Managing your cashflow has always been a fundamental part of securing any company’s existence. This seems to be even more relevant now that we are faced by the Covid-19 crisis. The fact that the economy needs to be temporarily frozen in amber for public health purposes means that many companies are facing a sudden – and often totally unexpected – fight for their existence. With suppliers who cannot deliver in time (if at all), customers who are paying late, revenues and margins are under severe pressure. A healthy cashflow is as essential for a company as a steady oxygen flow is for the human body.
To ensure cashflow remains healthy, it is imperative to focus on two core processes within your organization.
- Credit Management (often part of the broader end to end process domain of Order to Cash): This process ensures that the money that is owed to you by your clients actually comes in and comes in on time.
- Procurement : On the other end, you have outgoing cash process, which is about managing capital expenditures to make sure that you do not spend more than was foreseen.
But managing these two main “arteries” (to stay with the human body analogy) is not enough. They are part of a broader eco-system of, to some degree independent functions, that are all interrelated. To make sure that these essential functions in your organization keep running in a healthy manner, you must be able to manage this entire internal (and external) eco-system of functions. This balancing act forces you to look at ways to manage your ecosystem more effectively.
The Mavim intelligent transformation platform helps you do just that. With Mavim Process Mining, you can create fast and accurate insight into all of your operational processes. You quickly identify how your processes are actually running based on data. You can identify bottlenecks, deviations from the standards, throughput times, costs, non-compliance, etc. This will help you keep your organization running and even stay ahead of the competition.
But the Mavim platform does not stop there. It facilitates you in your entire continuous improvement cycle by helping you create a virtual blueprint of your entire business eco-system and feed this model with fact-based data to help you continuously optimize your organization and come out on top! It is the central source of the truth that provides all of your organizational elements with the information they need at the time and place they need it.
In an upcoming webinar we will focus on how to optimize two essential financial processes, Procurement and Credit Management, to help you manage your healthy cashflow and stay on top of your game.