A flexible process that suits your business needs
In our Corporate Financial Value Chain concept, we break down your financial processes into six mega processes, outlined below.
The concept is sufficiently flexible to enable you to begin development in any part of the value chain. In practice, a number of processes are involved in resolving a specific issue and the most significant improvement opportunities are identified when reviewing the whole chain. This can mean developing new operational processes, enhancing integration within the existing infrastructure or implementing an SEB or third-party solution.
Purchasing and sales
Much of the administration associated with your purchasing and sales is integrated into the cash management concept. Streamlined administration has a direct effect on both cash flows and working capital. Just by examining how invoices are processed, you can achieve administrative savings of 60 % or more in comparison to mainly manual invoicing processes. For purchasing, you can make substantial cost savings through administrative and physical co-ordination in the purchase of goods and services not directly linked to production.
Managing financial assets is invariably associated with various kinds of risks. You must receive payment for products and services rendered. Exchange and interest rates may increase or decrease. Operational risks can occur as a result of human error or for technical reasons. Political trouble spots can impact on business climates. No matter what the eventualities, we will support you in identifying and evaluating the risk factors associated with your line of business – and together develop risk management strategies.
Day-to-day liquidity management often conceals a considerable savings potential. Clear structures, sophisticated techniques, efficient reporting and extensive systems integration are the cornerstones of this process. Our goal is to generate value by optimising net positions, working capital and, consequently, cash flows. Best practice often dictates a distinct – and frequently centralised – process. Well-designed processes can also reduce the number of banks involved.
Cash flow forecasting
A company's ability to make forecasts is a key indicator of the quality of its liquidity management. It often reveals the effectiveness of integration between central functions and associated business units or subsidiaries. We examine your existing procedures and make improvement proposals. Our aim is to optimise processes dealing with net positions and cash flows. Automating processes improves internal control with regards both current position and risk. Furthermore, accurate, readily-accessible information improves the quality of decision-making.
Short-term investment and funding
Once cash positioning is accurately monitored and consolidated with a forecast of future cash flows, correct decisions can be made. Qualitative short-term investments and funding are reliant on the availability of accurate information and the ability to act upon it. They also require direct access to a range of alternatives for investment and funding that matches the treasury mandate. As well as improving return on investment and avoiding mistakes, it enables an increased control and efficiency in the working processes associated with the transaction itself.
Payments and collections
Efficient payment procedures are dependent upon integration – linking internal and external information flows that are generated by purchases, sales and financial transactions. Netting solutions allow you to meet payments, but minimize the number of transactions and currency exchanges involved. You can also benefit from the integration of your payment information with your sales and supplier ledgers, as well as your general ledger. The key is Straight Through Processing (STP) – the ability to interact with other banking systems, clearing houses and, of course, your own financial and business systems.