CHALLENGE
The main challenge for our customer was the very low accuracy of the existing cash flow forecast. The background to this was a fragmented system landscape, which did not allow rapid data analysis and the resulting restriction to rough, non-data-based assumptions about cash flow development. As a result, there were repeated substantial deviations between forecast and reality.
Forecast accuracy is not reliable
Cash flow planning is based on historical values and assumptions made from experience, which leads to massive differences
Driver analysis is very complex
Cash flow planning that is aggregated by business unit only allows time-consuming detailed analyses, for example, by products, creditors and debtors
Savings & liquidity potentials are uncertain
Fragmented payment terms on the client and supplier side make it difficult to estimate liquidity and savings potential
SOLUTION
Development of an automated business intelligence cockpit with cash flow forecast scenarios and direct ERP connection.
The direct data connection (e.g. supplier orders) enables objective, data-based cash flow forecasting.
Time
Efficient analysis of cash flow drivers at the detailed level (product, creditor, debtor) and fast generation of control mechanisms for cash management
Quality
Very accurate estimation of liquidity and savings scenarios for creditors and debtors and intercompany business
Savings
Realization of savings potential through more effective use of payment terms (discount) with identified scope of liquidity