Improved Forecasting through an Automated and Integrated Dashboard
Statistics
Client Description
A US-based leading manufacturer and marketer of replacement parts, equipment and accessories for forestry, agriculture and construction industries with more than 40K employees.
Business Challenges
- Cash flow analysis and month end reporting followed a manual process
- Forecast vs. actuals comparison reporting was missing.
- Acquisitions – Legacy systems needed to be integrated to SAP and CLF Dashboard.
- Consolidated collection strategies needed to be built in for accurate receivables management.
- No Single framework was in place to capture dispute cases and process resolutions.
Solution
- Implemented a CLF real-time cash monitoring system.
- Pro-active collections and reduced DSO were achieved by resolving disputes quicker.
- Early warning system was built to monitor blocked orders, large payments in the process of becoming overdue, net cash availability (Variance tracker), etc
- Credit monitoring and event trigger were automated and integrated with CLF dashboard.
- Optimized cash outflow tracker by vendor information provided via CLF dashboard.
- Bank statement processing was achieved through CLF.
- CFO dashboard was viewed to summarize operating cash vs. financing cash on daily/weekly/monthly periods.
Benefits
- Eliminated Excel spreadsheet usage and introduced CLF real-time cash monitoring.
- Cash position and forecasting were automated to provide a real-time view of cash position on-demand.
- Accurate prediction of vendor payments outflow was achieved by introducing solutions to capture in-transit payments and pay cycle calculations.
- Consolidation of customers by company codes resulted in equal distribution of collection resources and improved efficiency in pro-active collections.
- Forecast on-demand provided exceptional value in determining near real-time cash flow for making valuable decisions.
- Authorizations built across departments for CLF dashboard resulted in organized work environment.
