Schneider Electric (SE), ‘the most local of global companies’, and Coface, a multinational on a human scale, have been working together for several decades. As a client of Coface Global Solutions, SE benefits from a worldwide programme and dedicated teams to secure its business. SE also uses Single Frame solutions to support the development of its datacenter projects. With one credo: to manage commercial risk in a more predictive way.
A partnership powering Coface's international expansion
The partnership between Schneider Electric, ‘the most local of global companies’, and Coface, a multinational on a human scale, is not new: SE is one of Coface's most loyal clients. The relationship between these two key players in world trade goes back several decades, to when Coface, formerly the Compagnie française d'assurance pour le commerce extérieur, specialised in export credit insurance, was mandated by the French government to insure the political and commercial risks of French exporting companies.
The development of SE's business beyond France over several decades has even been one of the driving forces behind Coface's internationalisation.
CGS: Global risk strategy and tailored organisation
With its broker partner AON, SE entrusts Coface Global Solutions (CGS). CGS solutions are specifically designed to meet the needs of multinationals, in particular by setting up a structure wholly dedicated to credit risk management: a robust, glocal strategy that is both global and local. All policies are streamlined within a single programme. The result is simpler, more granular management of exposures, and a high level of performance in managing commercial risks across different geographies.
As a CGS client, Schneider Electric benefits from a tailor-made organisation: a programme manager and a risk underwriter at Group level, supported by all the local underwriting, collection and Account Management teams in the 46 countries where Coface operates.
We work with Coface to secure credit risk with our clients in various geographies. Its global organisation combined with its extensive local presence fits well with the model we are looking for. In particular, we can access local risk underwriters and benefit from their assessments in underwriting decisions. The alignment between the local teams and those at Group level is fluid and facilitates rapid decision-making.
explains Ghislaine Guittat, Vice President Credit Management at Schneider Electric.
Single Risk to ensure the growth of datacenters
Today, Coface covers SE's operations in Europe, North America, North Africa, Latin America, the Near and Middle East, Africa and Asia. Over the decades, Schneider Electric and Coface have built a solid relationship and strong partnership, which contributes to the effectiveness of the trade credit insurance programme.
This relationship based on trust allows us to work seamlessly with the credit managers in the different regions, particularly when it comes to explaining our decisions and approach. This ongoing dialogue between the teams helps us to manage risks dynamically. We have a better understanding of their business model and we know their clients better so that we can deliver the most appropriate credit recommendations as quickly as possible. Over time, we perfect our risk management, adapting it to SE's changing needs, so that we can offer the most appropriate solutions for cover and limit the risks as much as possible.
underlines Paul Goracy, CGS Account Manager, Coface France & Western Europe.
For Schneider Electric, new needs are emerging and one trend is clearly confirmed: the strong development of Single Risk policies to support Systems operations, SE's main growth driver (+10%) to date, driven in particular by datacenter projects around the world. Since 2022, Schneider Electric has strengthened its commercial risk management by introducing Single Frame policies, which are better suited to protecting this type of high-investment, long-term project (24-36 months). Single Frame, structured as a framework policy, simplifies the underwriting of Single Risk guaranteed contracts.
This solution offers standardised and very attractive terms and conditions of coverage. Our clients can also discuss complex projects on a regular basis with our Single Risk underwriters. Their specific expertise and good understanding of the mechanisms behind projects as unique as data centres enables us to stick to the growing needs of SE.
says Hélène Martin, Head of Single Risk at Coface France.
“Together with the Coface teams, we have succeeded in building a bespoke master policy that works well and is easy to manage, thanks in particular to the standardised wording and clauses. These solutions provide real added value compared with a traditional credit insurance policy. What's more, it gives us the peace of mind that you'll be with us throughout the project", notes Ghislaine Guittat.
"Using data to manage risks in a more predictive way"
As a key player in the industrial digital transformation, Schneider Electric is now investing actively in specific services that differ from its traditional businesses. The Group, one of the first to use API solutions to manage commercial risk, now has a greater need to assess more accurately and be able to anticipate the risk of non-payment, payment behaviour or default by its commercial partners. To achieve this, SE, designated by the City as one of the ‘Super 7’*, relies on data and new technologies.
These are two essential levers for better anticipating risks, particularly sectoral risks. We are looking to enhance our data base, for example on company mergers or on activities that could have an impact on our commercial partners. The aim is to go well beyond standard financial information, which only gives a 1-year view, whereas today we need to develop analyses and scores of the probability of insolvency one or more years ahead in order to manage risks more predictively.
concludes Ghislaine Guittat.
About Schneider Electric
Founded by the Schneider brothers in the 19th century, at the height of the Industrial Revolution, Schneider Electric began as a major player in the steel and machinery sector, before rapidly moving into the emerging electricity market. Today, the French company is an international group, specialising in digital transformation, energy management and automation, which defines itself as a digital partner at the service of a more sustainable world for all.
The Group relies on 150,000 people worldwide to develop sustainable solutions for intelligent power supply and integrated energy management for residential housing, commercial buildings, datacenters, infrastructure and industry. SE's business portfolio is based on three main segments:
- Products (53% of Group turnover in 2023)
- Systems (28% of Group turnover in 2023)
- Software & Services (19% of Group turnover in 2023).
The growth of the Group, which achieves a turnover of €36 billion in 2023 (organic growth of +13%), is mainly driven by its operations in North America (34%), Asia-Pacific (28%) and Western Europe (25%).
*Seven major European companies considered to be as promising as Wall Street's ‘Magnificent Seven’ (Alphabet, Tesla, Microsoft, Apple, Nvidia, Amazon, Meta).
