Improved Visibility with Automated Cash Flows
Statistics
Client Description
A US-based leading manufacturer of Nylon 6 resin, chemical intermediates, and fertilizers with annual revenue of $1.51 Bn and over 1500 employees.
Business Challenges
- Complex vendor pay cycles resulted in inaccurate cash outflow forecast.
- Hybrid process for cash monitoring resulted in inaccurate forecasts with no data integrity.
- Lack of collection strategies for optimizing cash inflow.
- Absence of outlook email communication for resolving large volume sales & pricing-related disputes.
- Lack of visibility towards credit holds and updates to credit score had led to inaccurate evaluation of customer credit risks.
Solution
- Cash monitoring tool (CLF) was designed to automate the process of loans, short term borrowing and factoring, for real-time reporting.
- One view for end-to-end dispute resolution and workflow automation.
- CLF was integrated to collections, disputes and credit data.
- Single source of truth for the entire organization due to tactical visualization of data in the dashboard was achieved.
- Credit Management was integrated to CLF
- Net cash availability variance analysis was performed.
- Optimized cash outflow tracker by vendor information was provided via CLF dashboard.
- CFO dashboard was viewed to summarize operating cash vs. financing cash on daily/weekly/ monthly periods.
- Customer collections, promise to pay, resubmission and capture of notes log were realized via collections tool.
- Advanced collection strategies were devised to initiate pro-active collections for large customer accounts.
Benefits
- Transformed business operations by eliminating Excel reporting.
- Cash Position and forecasting were automated to provide a real-time view of cash position on-demand.
- Forecast vs actual functions was introduced through version management. This provided a realistic view of the company’s position in terms of cash and future goals.
- Dispute resolution timelines were reduced as the sales and products team could validate and approve claims faster through mobile emails.
- Customer creditworthiness and customer in-activity were re-evaluated and information about the overall volume of business from the customer was published.
