Improve cash flow with Financial Supply Chain Management
In today's tough market conditions, organisations are increasingly focused on the performance of their finance department. The availability of cash in the market has dried up, so strong cash flow is critical; and spending has been cut to minimise costs, leading to a reduction in new business projects or acquisitions. Lack of available credit in the market for businesses has also increased the risk of bad debt.
Organisations are finding it harder to collect customer payments and outstanding debts. Research shows that in the past year, 71% of small companies have suffered from late payments, and 25% of outstanding debt is more than 120 days overdue*. Consequentially, this has produced a domino effect of businesses unable to pay one another.
To address these challenges and remain competitive, organisations need to generate more cash than their competitors and invest it in their future. SAP Financial Supply Chain Management (FSCM) enables organisations to maximise their cash flow by unlocking the potential in their business.
Why are your customers not paying you on time?
- They can't get credit or they don't have cash in the bank.
- Disputes remain unsolved: Some customers may be raising extra disputes to delay payments.
- Your invoice is not a priority: Customers will react to suppliers who take the strongest approach to cash collections and will delay paying you if they can get away with it.
- You are not utilising the most effective methods in chasing them for payment.
- They have a credit limit they can no longer service.
Download FSCM brochure