Treasury
Treasury

Building a Smarter Treasury Function

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Building a Smarter Treasury Function

 

How treasurers can become the backbone of a solid financial management strategy?

The traditional, back-office focused corporate treasurer is an almost extinct species. Post the recent financial crisis, corporate treasurers have taken on a more visible and strategic position in the organization. Today, they serve as internal consultants for business units, playing a more decisive role in balance sheet management and risk-based decision analysis. As the focus on corporate performance intensifies, treasurers are expected to enable smarter decisions around capital allocations. They must be able to evaluate new business and investment opportunities by leveraging in-depth analytical skills and optimize the strategic use of cash.

Crossing the roadblocks

 

The primary focus of corporate treasurers is on effectively managing cash to find ways of funding key business requirements and growth while maximizing the return on every investment made. One of the key challenges they face while pursuing this goal is gaining control over global cash. Current corporate governance laws also necessitate better visibility into enterprise-wide cash positions.

 

Ultimately, corporate treasurers are looking to divert more capital resources for research and development, acquisitions, share buybacks, debt payments, and raising the dividend, thus increasing shareholder value. To meet their growing obligations, they are increasingly banking on automated tools that drive straight-through processing, and analytics to drive data-driven, precise cash management strategies.

 

Top concerns

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    Unlocking working capital
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    Maximising returns on excess cash
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    Taking on a more cross-functional approach to treasury activities
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    Closely monitoring financial metrics across projects
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    Driving holistic risk management strategies
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    Making accurate, ongoing cash flow projections

Deliver more value with a dynamic discounting solution

 

Dynamic discounting is an effective tool that allows treasurers to accelerate payments to suppliers, while simultaneously delivering greater value to their organization. An intelligent dynamic discounting solution helps implement early payment discount programs for suppliers, paving way for risk-free returns on available liquidity. Ultimately, treasurers can drive greater ‘cash optimization’, and strengthen the enterprise’s financial stability.

 

Dynamic discounting solutions help:

  • Schedule supplier payments intelligently
  • Expedite invoice settlement to gain supplier confidence
  • Set savings target with appropriate Annual Percentage Rate (APR)
  • Customize dynamic discounting programs based on supplier categories and types of invoices
  • Track savings from various invoice discounting programs
  • Send automated offer alerts to suppliers via email and supplier self-service portals

 

Tangible benefits

  • Discover and capture opportunities for increased savings
  • Drive better collaboration with suppliers
  • Manage cash flow and channel excess cash to investment avenues
  • Leverage critical financial data to make holistic cash management decisions
  • Achieve better capital efficiency and returns
  • Negotiate more favorable contract terms