Expansion strategy
Partner in financial services 5
DLL Business Model
DLL's international expansion strategy
is simple: follow vendors into their
markets. During the coming years, DLL
will continue to expand into Asia (South
Korea, Japan, Hong Kong, China and
India), South America (Argentina, Brazil,
Mexico and Chile) and Central and
Eastern Europe. 'DLL's expansion in
these countries opens the door for RI's
financial services,' says Sanders.
'In addition, in emerging countries
where DLL already has a strong foothold,
as in Brazil, it can offer R! leverage in
asset-based finance. In such cases, DLL
can test the water for Rabobank,' adds
Sanders. 'The flip side of the coin is that
Rabobank can, for example, with its
recent acquisitions in Poland and Turkey
provide DLL an opportunity to extend
its bank outsourcing lease program
(provide leasing via third parties) in
additional markets.'
the same time, has saved the vendor,
McCormick, money as well.
A third component of DLL's business
model consists of effectively managing
the distribution chain of the vendor
(manufacturer). DLL has assisted
McCormick over the past three years,
by offering sales finance solutions in a
new distribution network for the North
American market, consisting of 215 dealers.
Rabobank can also benefit from DLL's
expertise in re-marketing services
internationally. In each country
international re-marketing DLL
operators serve Rabobank by offering
high level asset management skills and
capabilities as well as an extensive
network of vendors in the area of asset
management. Rabobank in turn can
assist DLL in offering structured finance
solutions for large portfolio or large
ticket deals.
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DLL currently provides local Rabobanks in
the home market with a complete range of
lease products, supported by a web-based
front-office sales support system called
Lage Landen Experts System (LLEXS).
Rabobank Nederland also uses DLL's asset
management and re-marketing services
internationally.These DLL skills will prove
even more valuable when the banking
accord to improve risk and asset manage
ment, Basel II, is introduced in 2006.
DLL strives to become 'Best in the Class'
in the global vendor finance market.
Being part of the financially strong
Rabobank Group makes DLL's competitive
position even stronger. Having world-
class solidity and credibility, competitive
funding and cooperative banking at your
fingertips, means future progress for DLL.
Having a global vendor finance market
leader means lucrative opportunities
for Rabobank.
Another main component of DLL's
business model besides its international
expansion strategy is its value chain
delivered to customers at point of sale.
For example, the innovative financial
tools which DLL offers its vendors at the
point of sale. Salesmen from McCormick
dealers, a manufacturer of agricultural
equipment, use mobile phones as a
quotation tooi to calculate finance
quotes at the farm. DLL hired an outside
firm to develop the quotation tooi for
McCormick. The customer, the farmer,
is served because he doesn't have to
pay a visit to the bank. This efficiënt
and direct approach, enabling salesmen
to sell finance and earn commission at
