Efficient cash flow management | Secure liquidity in difficult times

Future-oriented planning and simulation of financial assets to ensure stability and success − with use cases that can be implemented quickly

Studies show that 80% of the companies are not in control of their cash flow.

The challenges of liquidity planning in turbulent times

Especially in turbulent times, it is more important than ever to keep a detailed eye on cash flow. What is optimistic today can endanger the economic existence of the company in the near future. Shorter reconciliation and control cycles for cash flow are necessary, combined with simulation scenarios that allow a look into the future with the highest possible level of detail.

Measures to increase cash flow

The apparently simplest way to optimize cash flow is to increase corporate revenues - in other words, sales. An approach that only very few companies succeed in times of crisis. Pragmatic approaches are currently in demand that have a quick and positive effect on cash flow.

Agree short payment terms with customers and monitor punctual receipt of money

Invoice service directly after service provision with short payment terms
On-time payment with a stringent dunning process
Eliminate internal sources of error that can lead to late payment (for example, incorrect invoices)
Credit investigation for new customers

Increase own payment targets

never pay bills too soon
Negotiate longer payment terms with suppliers (creditors)

Factoring

Faster income = higher liquidity
Paid receivables mean real cash and are not booked as receivables, thus improving the cash flow

contribute capital

Credits
Shareholdings
Share capital increase

Avoid overproduction

Production only on the basis of a concrete customer requirement
The focus is not on the utilization of the machines, but on the actual demand of the customer
Full capacity utilisation can lead to overproduction
Adaptation of planning algorithms in ERP

Optimize direct costs

Renegotiate rent and leasing costs
Reduce personnel expenses

Which measures to increase cash flow are recommended for my company in the current situation?

4 steps to manage liquidity risks and cash flow

Cash is king. Three words that have become more important than ever in the current climate. If one observes the current economic situation, it is not difficult to predict that companies will only be able to meet the challenges of the coming months with crisis-proof cash flow and liquidity management. Success will be characterized by the ability to use and manage financial resources effectively and efficiently.

Graphs, charts, business table. The workplace of business people.

Liquiditätskennzahlen_Cashflow_IBsolution

Determine and report key liquidity figures

Definition of key figures
Automated data collection
Calculation of LCR and NSFR including liquidity buffer
Standard reports

Early assessment of liquidity development

Flexible evaluation possibilities in real time
Generation/integration of cash flows at single transaction level for simulation
Simulation environments on uniform data sets

Perform simulations on the basis of valid data

Analytics for the use of scenarios/simulations
Real-time simulation
Creation and execution of ad-hoc simulation directly by the user
Integration of what-if simulation results

Include liquidity costs in planning

Integration of liquidity costs as liquidity spread
Management of the liquidity buffer (CBC/HQLA)
Definition of the Emergency Funding Plan (CFP)
Optimization algorithms for CBC

Professional cash flow management introduced quickly and pragmatically

Excel is not a solution

Anyone who has not yet implemented professional cash flow management based on available data from the ERP or connected systems should hurry up. The current crisis calls for pragmatic solutions that can be implemented quickly.

If you are not yet using a business warehouse such as SAP BW or if you are missing data in SAP BW, cloud solutions such as SAP Analytics Cloud or SAP Analytics Cloud for Planning can quickly help you achieve your goals. If you are already using SAP BW, add-ons such as AGIMENDO.calc can provide real planning and simulation support.

The following applies to both alternatives: They are delivered with ready-to-use business content and can therefore be deployed very fast.

Realize a detailed cash flow management with simulation possibilities at the highest level of detail.

Our contribution to the SAP Partner Initiative

Now think ahead!

SAP and Partners - Together we are here for you

Especially now you benefit from the expertise of SAP and its ecosystem to act correctly and to overcome challenges quickly.

The current extremely volatile market situation requires a fast and resilient scenario presentation and simulation of how cash flow and liquidity will develop in the near future.

Introduced in just two days, our consulting package offers you a

simulation of measures and their effects on liquid assets and the financial situation of your company in the future
"What if analysis" as a decision-making tool
simulation model based on the value driver tree of the SAP Analytics Cloud for Planning

Price: 4,900 EUR + license fees for the SAPAnalytics Cloud

Unpredictable slumps in sales require an extremely liquidity-oriented management of the company. Fast intervention and action is more important than ever.

Introduced in just two days, our consulting package offers you

cash flow monitoring to be able to react optimally to current challenges
a reduction of avoidable liquidity bottlenecks

Price: 4,900 EUR + license fees for the SAPAnalytics Cloud

Let's talk together about which cash flow management solution is the best for you.

It will only cost you 20 minutes of your time for a first phone call.

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