Are you ready for the new era of financial agility in Purchase to Pay?
Friday, 15 May 2015
We see CFOs focusing significant resources on developing robust systems to manage cash as it passes through the organization. And yet, many still do not have the level of visibility and control they would like. The picture is one of constant uncertainty and, for most, financial agility is a distant dream because they are too busy with day-to-day operations. Many stop evolving their purchase to pay processes after implementing a few quick savings programs or increasing controls over spend. They are blind to the many opportunities available to grow the business, and to increase the financial performance.
Product Marketing Manager
The thing is – many companies have more cash than they think they do. It’s just that it’s obscured from view. It’s hidden within the purchase-to-pay cycle – in opaque paper-based invoicing, in costly manual workflows, in a host of processes that have long ago passed their sell-by date and value to the company.
Every day companies are leaving a significant amount of value on the table. This value can be found in many areas: for example, leveraging better payment terms, and discounts against early payments or in reducing unnecessary costs from current manual processes.
When true visibility and financial agility are achieved throughout the purchase-to-pay cycle, Procurement and Accounts Payable can become aligned to deliver strategic impact together with the supply chain.
But, how to begin?
- Automate your purchase-to-pay processes to speed it up and deliver greater visibility
Accounts payable plays a key role in streamlining financial processes to gain visibility and increase efficiency. Increased alignment across Finance, Accounts Payable, Procurement and Treasury improves visibility, collaboration and agility across the purchase-to-pay process.
- Network your purchase-to-pay process around your supply chain
When you have higher levels of automation and greater visibility into your accounts payable, you don’t need to hoard cash. This means you can pay suppliers not only on-time but early - which benefits the whole supply chain. Early payments are good not only for your suppliers, but also for you: you can benefit from early pay discounts instead of paying late fees.
- Take advantage of new innovative payment methods in the cloud
The benefits of simplifying and streamlining key financial processes extend beyond fewer fees and less headaches: it opens a new era of financial agility with innovative ways to manage working capital. Today's networked purchase-to-pay solutions enable CFOs and CPOs to become truly “networked” with their supply chains with flexibility across their financial operations.
Some of the forward thinking CFOs, CPOs and other financial leaders are already taking advantage of the latest innovations in commerce networks to increase their financial agility and to generate new profit streams.
The new era of financial agility is already here. There are already companies taking advantage of streamlined purchase-to-pay processes to tap into new value streams. For example, Take-Two Interactive, makers of Grand Theft Auto and other video games has transformed their accounts payable function into a profit center - watch the Take-Two Interactive customer testimonial .
Are you ready to join the new era of financial agility?
I hope that you are now asking yourself how you can transform your business with networked purchase-to-pay to tap into these new opportunities. If so, I encourage you read our new eBook: “A Guide to Networked Purchase-to-Pay” . The eBook will help you to identify the level of maturity of your P2P, and to discover the steps you should take on the road to best-in-class financial agility.