Cash Management Automation
Overview
Cash was constantly flowing across the system, as inflow or outflow. There were multiple points of sale and vendors across different locations. Cash must be realized, and payment commitments must be honored on time. Shortage or excess of funds must be forecast, and management actions must be taken.
INDUSTRY:
Restaurants & Brands
VOLUME:
A global restaurant chain with thousands of outlets
CASH VOLUME:
$32 billion across the global system
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Challenges
- Cash collections occurred in multiple locations and were deposited in multiple banks, making tracking challenging.
- Balance available across different bank accounts were not known.
- The bank account to be used for paying payable commitments was difficult to determine
- Shortage of funds was difficult to be predicted in advance
- The availability of excess funds was not apparent.
- Bank reconciliation was a nightmare.
Challenges were reviewed
Cash management strategy was formulated
Solution was designed and architected
Solution was implemented successfully
Solution
-
Bank accounts were organized into three different categories:
> Collection accounts
> Cash concentration accounts
> Payable bank accounts - All amounts collected in collection accounts were automatically swept to cash concentration accounts at end of each day by the bank.
- Payment were processed through the payable bank account for all payment methods, and all debits to payable accounts were swept to cash concentration accounts at end of each day.
- The customer treasury team needed to monitor the cash concentration accounts for liquidity status and cash management.
- The collection bank accounts were decentralized, and reconciliation automation was enabled.
Processes were re-engineered
Solution was prototyped for one bank And implemented for all
Workforce was trained and empowered
SAP FSCM solution was leveraged and powered
Business Benefits Harvested
- Cash collections occurred in multiple locations and were deposited in multiple banks, making tracking challenging.
- Balance available across different bank accounts were not known.
- The bank account to be used for paying payable commitments was difficult to determine
- Shortage of funds was difficult to be predicted in advance
- The availability of excess funds was not apparent.
- Bank reconciliation was a nightmare.
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