SunGard investigates future trends in Corporate Liquidity Management and recommends three ways corporations can improve cash flow and reduce cost structure.
SunGard recommends corporations gain control and visibility across the entire financial supply chain, from stringent control of trade receivables to treasury, risk and cash management, through automated workflow processing and execution of payments. With liquidity management a key concern for corporations in a tough credit environment, SunGard is helping them to gain efficiencies around commercial transactions, improve visibility of cash flows and credit risk, and reduce borrowing requirements.
Three ways to improve liquidity management:
1.-Employ risk based collections strategies whereby companies incorporate risk scores to automatically determine the most appropriate path of action for chasing past due receivables.
2.- Leverage sophisticated technology to closely monitor FX and commodity fluctuations for improved decisioning within the treasury function.
3.- Look to improve cost structures and reduce fraud by instituting a global payments workflow and approval solution with interfaces for execution of electronic payments.
Three Key Challenges
-The credit crunch has had a significant impact on cash flow, credit lines and ability to borrow,-Corporate commercial transactions are highly manual and inefficient, causing considerable delays in settlement and cash flows,-Corporations are increasingly migrating to electronic settlement of commercial transactions and workflow engines in SOA environments.
With the challenges of inefficient processing, limited visibility to cash flows and risk, reduced IT budgets and greater demands from customers and trading partners, Corporations are embracing change in and around their liquidity management functions, says CJ Wimley, executive vice president, corporate solutions, corporations business, SunGard.
SunGard provides corporations with sophisticated solutions that eliminate friction in the order-to-cash cycle while providing visibility to cash flows and the associated risk. These solutions are offered as a managed service to our customers to help them minimize the drain on their IT infrastructure and resources while reducing their overall cost of ownership.
With the help of SunGards AvantGard, we have been able to measurably improve our productivity by centralizing our credit and collections operations, says Scott Miller, vice president of finance, order-to-cash, Henkel.
We were looking for a single payments solution that could meet our business, hosting and connectivity needs, says Jean-Philippe De-Waele, treasurer for European and African operations, Johnson Controls. We chose AvantGard because of SunGards strong reputation and international presence, and because the solution offers full SWIFT integration in a hosted environment.
L.D.