1© 2013
The
Working Capital
Success Guide
Leveraging Technology to Dramatically Shorten the
Cash Conversion Cycle & Increa...
2© 2013
“Working Capital Performance Deteriorates in 2012…
• Opportunity now tops $1 trillion – Hackett Group
• Working ca...
3© 2013
Volatility and restricted liquidity have companies in a vice
• Companies need better cash visibility and forecasti...
4© 2013
Companies gain by connecting Treasury and Operations
• Working Capital systems can better inform cash planning
• B...
5© 2013
Suppliers
Receivables
Buyers
Payables
Treasury Department
Financial Risk
Management
Debt / Investment
Management
C...
6© 2013
Suppliers
Sales
Order Mgmt.
Receivables
Buyers
Sourcing
Procurement
Payables
Treasury Department
Financial Risk
Ma...
7© 2013
SAP and Ariba Business Performance
Benchmarking – By the Numbers
 Established end of 2004
 Complimentary service...
8© 2013
Percentage of companies with online
forecasting models that regional and global
organizations use to analyze curre...
9© 2013
Savings compliance & discount opportunity
capture when invoice processing is automated
and finance operations & tr...
10© 2013
The Rise of the Networked Economy
11© 2013
Businesses Struggle with Collaboration
© 2013 Ariba, Inc. All rights reserved.11
Wasted Time and Resources
Higher...
12© 2013
“65% of Best in Class companies have the capability to effectively collaborate
with their network of suppliers ve...
13© 2013
Take Advantage of Working Capital &
Dynamic Discounting Opportunities
Significantly Increase supplier participati...
14© 2013
Establish Collaborative Finance Processes
Reduce exceptions and improve efficiency of and visibility
into financi...
15© 2013
Intercompany
Connectivity
And Other
Network
Adapters
CXML
EDI
Supplier
Portal
Paper
Invoice
Suppliers
Sales
Order...
16© 2013
Award Winning Approach…
 Best Working Capital / AP/AR Solution
 Best Cash Management Solution
 Best Process Re...
17© 2013
Proven Benefits of Networked Collaboration
>4,500 global suppliers networked enabled
98%+ touchless invoicing -- ...
18© 2013
Driving Business Results via Intelligent
Treasury And Working Capital Management
Control Predict Execute
Know you...
19© 2013
Thank You!
20© 2013
Ariba
Network
Adapter
CXML
EDI
Supplier
Portal
Paper
Invoice
Suppliers
Sales
Order Mgmt.
Receivables
Buyers
Sourc...
22© 2013
Thank You Sponsors!
PLATINUM
GOLD
SILVER
DIAMOND
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The Working Capital Success Guide - Leveraging Technology to Effectively Increase the Value of Cash

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Video/Presentation: http://www.proformative.com/events/working-capital-success-guide-leveraging-technology-effectively-increase-value-cash

Board level executives are more focused on the treasury and working capital management functions than ever before. CFOs and Treasurers are scrambling to improve the timeliness and accuracy of their business information in order to more proactively pinpoint risks and potential shortfalls that could knock them out of business, or to successfully identify safe opportunities for investment income when surpluses are found. These executives are taking active steps to improve their working capital metrics and short term liquidity performance, and to minimize their risks throughout this historically unprecedented era of low interest rates and restricted banking liquidity. In this session, you will hear how Finance Executives are able to leverage technology to deliver greater visibility to their true cash position and better control over the complex processes associated with managing payments, collections, cash, liquidity, and risk.

Speakers:
Craig Himmelberger, Director of Solution Marketing, SAP Treasury & Risk Management Solutions
Steve Pateuk, Director of Strategic Alliances & Business Development, Ariba

Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com
Track: Finance Technology | Session: 2

Published in: Business, Economy & Finance
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  • Craig Lead
  • Craig Lead
  • Key Messages:SAP established a benchmarking program 7 years ago in conjunction with our users’ group. And since that time, the program has grown significantlyThe program is free of charge and leveraged by SAP and non-SAP customers alikeThe Program is well established now with a growing database of benchmarks – globally ; maybe the largest in the industry (note the stats on the slide).This is a complimentary service for our customers, and SAP makes a significant investment of manpower to analyze benchmark results because we believe it’s in the best interests of our customers.
  • Business Networks are emerging and evolving to provide new value to the supply chain and new value to you and your trading partners.
  • Steve Lead
  • Steve Lead
  • Craig Lead
  • Craig Lead
  • Craig Lead
  • Craig Lead
  • The Working Capital Success Guide - Leveraging Technology to Effectively Increase the Value of Cash

    1. 1. 1© 2013 The Working Capital Success Guide Leveraging Technology to Dramatically Shorten the Cash Conversion Cycle & Increase Return on Cash Craig Himmelberger, Director SAP Treasury Solution Marketing craig.himmelberger@sap.com Steven Pateuk, Director Ariba Channels Marketing steven.pateuk@sap.com
    2. 2. 2© 2013 “Working Capital Performance Deteriorates in 2012… • Opportunity now tops $1 trillion – Hackett Group • Working capital +6% last year, and +25% over the last 3 years
    3. 3. 3© 2013 Volatility and restricted liquidity have companies in a vice • Companies need better cash visibility and forecasting • Companies need better control over payments and collections
    4. 4. 4© 2013 Companies gain by connecting Treasury and Operations • Working Capital systems can better inform cash planning • Better cash information enables better business decisions and actions
    5. 5. 5© 2013 Suppliers Receivables Buyers Payables Treasury Department Financial Risk Management Debt / Investment Management Cash Management BanksBanks Payables Receivables Payments Receivables
    6. 6. 6© 2013 Suppliers Sales Order Mgmt. Receivables Buyers Sourcing Procurement Payables Treasury Department Financial Risk Management Debt / Investment Management Cash Management BanksBanks Payables Receivables Payments Receivables
    7. 7. 7© 2013 SAP and Ariba Business Performance Benchmarking – By the Numbers  Established end of 2004  Complimentary service  Available to SAP and non-SAP customers Overview Reach Content Coverage  Over 15,000 participants from over 4,000 companies  Global in scope  Partnerships with ASUG and other user groups  Studies available in 12 languages  Over 50 business process assessments  Over 1,200 KPIs, over 5,000 Best Practices  Over 300 peer groups
    8. 8. 8© 2013 Percentage of companies with online forecasting models that regional and global organizations use to analyze current and historical cash flow trends Source: SAP Performance Benchmarking Better visibility and forecasting of cash enables companies to stay ahead of volatility and take control of their liquidity and business planning. Companies are always seeking more accurate and timely information in their cash reporting and liquidity planning Traditional cash management systems are not well-integrated to operational business systems where better information exists Working capital decisions often have to be made with absent, imperfect, or inaccurate business information 13%
    9. 9. 9© 2013 Savings compliance & discount opportunity capture when invoice processing is automated and finance operations & treasury share networked data collaboratively Source: Ariba Performance Benchmarking Strategic utilization of working capital enables companies to finance operations at lower costs and with better returns. It’s estimated that for every billion in revenue, companies maintain an average of $126M in excess working capital. Hackett Group Confident and reliable liquidity projections can be used to drive systematic discount capture and optimize collections Companies can finance improvements via procurement savings, increased investment income and reduced borrowing costs 95%
    10. 10. 10© 2013 The Rise of the Networked Economy
    11. 11. 11© 2013 Businesses Struggle with Collaboration © 2013 Ariba, Inc. All rights reserved.11 Wasted Time and Resources Higher Operating and Supply Chain Costs Missed Sales Opportunities Manual Paper-based Collaboration Point to Point EDI, Portals & Single Process Solutions Delayed Payments, Overpayments, and Missed Discounts, Slow Cash Flow Limited Visibility and Elevated Risk Buyers Suppliers
    12. 12. 12© 2013 “65% of Best in Class companies have the capability to effectively collaborate with their network of suppliers versus only 21% of laggards. ” SuppliersBuyers Business Networks Facilitate Collaboration Between Trading Partners and Between Silos
    13. 13. 13© 2013 Take Advantage of Working Capital & Dynamic Discounting Opportunities Significantly Increase supplier participation by in early payment discounting. Capture existing discounts currently missed due to inefficient processes Achieve greater return on short term cash invested in early payment Improve working capital metrics of DPO and/or DSO $2+m Discount savings per $1 Billion spend Source: Ariba Performance Benchmarking Better Working Capital & Discount Management Benefits
    14. 14. 14© 2013 Establish Collaborative Finance Processes Reduce exceptions and improve efficiency of and visibility into financial processes. Take advantage of new early payment discount opportunities to increase savings and return on cash. Improve working capital performance through increase DPO and reduced DSO. Capture negotiated contract savings leakage through automated, networked compliance to terms. $10m Savings per $1 Billion spend captured by automating the invoice to pay process Source: AribaPerformance Benchmarking Better Collaborative Finance Management (AP/AR) Benefits
    15. 15. 15© 2013 Intercompany Connectivity And Other Network Adapters CXML EDI Supplier Portal Paper Invoice Suppliers Sales Order Mgmt. Receivables Buyers Sourcing Procurement Payables Payables Receivables Treasury Department Financial Risk Management Debt / Investment Management Credit Mgmt. Collections & Dispute Mgmt. Cash Management Bank Communication Mgmt. In-House Banking BanksBanks Payments Receivables
    16. 16. 16© 2013 Award Winning Approach…  Best Working Capital / AP/AR Solution  Best Cash Management Solution  Best Process Re-engineering Solution
    17. 17. 17© 2013 Proven Benefits of Networked Collaboration >4,500 global suppliers networked enabled 98%+ touchless invoicing -- integrated with 8 ERP systems worldwide 96%+ on-time payments – and enhanced discount capture 75%reduction in AP costs Global VAT and regulatory compliance – incl. in China >4,000 suppliers network enabled >500,000 electronic invoices/yr. – integrated with 7 ERP systems globally 70% global invoice volumes moved from paper to electronic – incl. non-PO >30% reduction in BPO costs
    18. 18. 18© 2013 Driving Business Results via Intelligent Treasury And Working Capital Management Control Predict Execute Know your accurate global cash position and all anticipated sources and uses Dynamically maintain reliable liquidity forecasts to turn insight into action Increase the effectiveness of payment and collections from action to accounting Include full sourcing and sales order data in all cash and liquidity reporting and analysis Use liquidity projections as a basis for all working capital policies and decisions Minimize wasted working capital and fully exploit it as a source to fund operations
    19. 19. 19© 2013 Thank You!
    20. 20. 20© 2013 Ariba Network Adapter CXML EDI Supplier Portal Paper Invoice Suppliers Sales Order Mgmt. Receivables Buyers Sourcing Procurement Payables Payables Receivables Treasury Department Financial Risk Management Debt / Investment Management Credit Mgmt. Collections & Dispute Mgmt. Cash Management Bank Communication Mgmt. In-House Banking BanksBanks Payments Receivables
    21. 21. 22© 2013 Thank You Sponsors! PLATINUM GOLD SILVER DIAMOND
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