Industries
Financial Services
The financial institution has been a peripheral player in the advancement of supply chain management. Yet without access to working capital and control of cash flow, the supply chain collapses. Why then is there no integration between the physical supply chain and its ability to manage the flow of goods and services, and the underlying financial Infrastructure? If cash is the oil that keeps the supply chain engine running then banks have a greater responsibility to provide enhanced financial services to their corporate customers.
In our vision we see a tight coupling of systems; enterprise and financial institution. They collaborate and share processes. Increasingly the bank will be in the position to collect, process and provide insight on information across the entire supply chain, helping its corporate customers reduce operating costs and seize upon opportunities to increase revenues.
In conducting research with CFO's from Indonesia's top companies we have compiled a list of the most typical problems encountered in managing the financial supply chain:
- Inaccurate sales and promotional information, obsolete pricing configuration and data, and incomplete shipping data.
- Order entry delay and errors, multiple customer masters and sales feeds, inappropriate credit limits, and high volume of credit holds.
- Delayed and inaccurate invoicing, reactive credit and order assurance, and poor delivery performance.
- Complex billing information, invoice copy demands, high ratio of change orders, and delayed identification of customer disputes
- High level of disputes and returns, excessive deductions, high degree of manual cash transactions, and high processing costs
- Slow dispute resolution, no dispute escalation protocol, and excessive administrative rework.
- Reactive collections, no analysis of errors at root cause level, and poor customer service
- Lost sales, impaired collections, increased bad debt and interest expense, and low customer retention.
Bottom Line
Companies need a solution that automates and streamlines the entire financial supply chain and handles all of their transactions? domestic and cross-border, open account and guaranteed.
