Ms Cairns said:
"The key to optimising working capital is speeding up the flow of goods,
information and cash through an organisation. Technology is maturing and
transforming the ways in which this can be done. Tasks, processes and workflows can be standardised, centralised and automated - unlocking liquidity and reducing risk."
During her presentation Ms Cairns explained how technology can:
- Control cash and enhance yield, through automated liquidity management;
- Reduce mis-matches, information failures and paper processing, via digital trade services;
- Reduce risk by increasing Straight Through Processing rates;
- Manage down the time between delivering goods and receiving payment; and
- Extend payment terms with suppliers.
ABN AMRO worked in partnership with Oracle to design an integrated working capital solution that allows the software vendor to centralise accounts payable for 95 per cent and accounts receivable for 90 percent of transactions across 36 countries. A high proportion of these are matched automatically. The approach enabled Oracle to reduce operating costs and risk as well as banking costs*.
Earlier this month ABN AMRO revealed that businesses can have significant
working capital locked into inefficient financial processes. By
optimising its use organisations can find funding for growth and achieve
greater financial resilience.
To help clients address working capital management in a holistic manner ABN AMRO has brought together the key components of corporate treasury best practice - liquidity management, FX, trade, custody and cash flow - into its Working Capital business to provide an integrated advisory approach. The aim: to assist clients to unlock the value in their financial supply chains, realise cost benefits, manage risk and build sustainable competitive advantage for the future.
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