Ariba Knowledge Nugget - Working Capital Management

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    One  of the biggest challenges in cash flow management is unpredictability.  The other is time.  When will a large customer settle what they  owe?  When will Sales bring in a large  new account — and how quickly can this account be up and generating revenue?   Working  capital management can create tension  between buyers and suppliers. While you prefer to hold on to your cash, your  suppliers would like to get paid sooner to improve their cash flow. You can  resolve the tension by routinely taking advantage of suppliers' early-payment  discounts. But those opportunities are often lost in a sea of paper invoices, or  bypassed when prevailing cash management strategies call for delaying payment to  earn interest on cash balances. Meanwhile, the conflicting priorities can put  cash-flow pressure on your suppliers.

     

    In this Ariba Knowledge Nugget, I will discuss  some of the concerns you are likely hearing in your finance organization and  likely from the CFO.

    Finance professionals need improved visibility into and control  over spend on a global basis, tools to automate and align the procure-to-pay  process, as well as dynamic discount and trade finance solutions to optimize  working capital management.