Home

Daikin drives supply chain efficiency with early pay and digital payments

Published: Feb 2026
Adam Smith Awards Asia 2025 logo

Best Supply Chain Solution

Highly Commended Winner

Daikin Airconditioning India Private Limited

Photo of Pavas Singh, Ganesh Jain, L.Pattnaik and Deepak Gaur, Daikin Airconditioning India Private Limited.

Ganesh Jain

DGM Commercial
Daikin Airconditioning logo

Daikin Airconditioning India Private Limited, a subsidiary of the Japanese multinational Daikin Industries Ltd., is a leading air conditioning company in India, established in 2000.

The challenge

With a vast and growing vendor ecosystem, many of whom are micro, small and medium enterprises (MSMEs), the company’s treasury team identified two key challenges:

  • First, the need for faster liquidity to vendors and the inefficient legacy invoice processing. Suppliers often struggled with liquidity constraints, especially during seasonal production peaks, despite Daikin’s standard payment terms being capped at 45 days and MSMEs being paid within 30 days of invoice receipt.

  • The second challenge stemmed from the inefficiencies of legacy, manual invoice processing systems, which led to delays in bill booking, reduced visibility for vendors, and additional administrative burden. These bottlenecks not only slowed down payment cycles but also threatened the financial agility of key suppliers.

The solution

Daikin partnered with C2FO to launch a dynamic early pay programme, allowing vendors to request early payment at self-selected discount rates. By June 2025, Daikin had enabled over ₹3,500 crore in early payments with a 12.9% yield and 36-day DPE.

Additionally, Daikin introduced the Trade Go Digital Payment Programme with Standard Chartered Bank to streamline payments for its importing suppliers, who account for nearly 40% of the company’s total supply chain by value. Traditionally, cross-border payments involved significant delays due to manual documentation, compliance checks and banking coordination often taking a minimum of four days to process. With the new digitised system, Daikin has reduced this turnaround time to under 24 hours, ensuring that critical overseas vendors receive timely payments, improving trust and operational continuity across international supply routes. The results were enabled by cross-functional collaboration across HCMS, procurement, shared services and treasury, supported by structured training and change management. Daikin’s approach reflects strong leadership vision, speed, scalability and a deep focus on ecosystem impact.

Daikin re-engineered its invoicing processes. Initially, RPA reduced the turnaround time from 20 days to ten. In the last 12 months, a new vendor portal has reduced it further to under three days. Impressively, 73% of invoices are now booked via this portal, compared to 27% through RPA.

Best practice and innovation

Partnership with C2FO has been central to Daikin’s transformation of supplier payments. Through the early pay programme, the company enabled dynamic early payments to vendors, unlocking working capital flexibility across the supply chain. The vendor portal introduced self-KYC, API-based validation with government and banking platforms, vendor-led invoice upload, rerouting of exceptions, and real-time visibility of invoice processing status creating a hassle-free and highly automated journey.

Addressing these issues became essential for maintaining operational continuity, deepening supplier trust, and reinforcing Daikin’s leadership in supply chain excellence.

These solutions do more than optimise cash; they strengthen business continuity, reduce supplier dependency on external debt, and improve supply assurance during volatile market conditions. By digitising processes and aligning finance with supplier health, Daikin has built a competitive, agile and reliable supply chain that directly supports its growth strategy.

Key benefits

  • Cost savings.

  • Process efficiencies.

  • Increased automation.

  • Risk mitigated.

  • Errors reduced.

  • Manual intervention reduced.

  • Exceptional implementation (budget/time).

  • Improved key performance indicator (KPI) metrics.

By embedding finance and digitisation into its core supply chain strategy, Daikin has created a shared-value model and strengthened its treasury outcomes while supporting supplier resilience. These initiatives reflect how thoughtful, technology-driven solutions rooted in empathy can unlock sustainable growth and transform business ecosystems, even in the face of macroeconomic headwinds.

“Our early pay and digitisation initiatives were designed with a deep understanding of supplier realities especially for MSMEs,” comments Ganesh Jain, DGM Commercial.

Adam Smith Awards sail

The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. To find out more please visit treasurytoday.com/adam-smith-awards-asia

All our content is free, just register below

Already have an account? Sign In

Already a member? Sign In