For today's corporations, the ground is shifting. Issues such as globalization, business efficiency, increased specialization and product innovation are percolating upwards in priority. And corporations are now focusing more intently than ever on profitability, working capital, cash flow, technology, risk management and investments.
To manage these priorities successfully, organizations are moving away from a longstanding business model. The traditional model has been subsumed by a new organization in which employees focus on customers, information is leveraged to gain valuable business insights, and working and physical capital are optimized. Amid this upheaval, today’s CFOs and other senior financial professionals are expanding their focus beyond merely reducing costs, and taking a hard look at three primary areas:
- Operational Efficiency – reducing the cost of operations, automating once-manual processes, managing global/regional businesses, and improving accuracy of transactions
- Financial Efficiency/Effectiveness – increasing transparency, mining actionable financial information, and complying with regulations as corporations expand into different markets
- Cash Flow and Risk Management – minimizing market and client risks, improving cash flow from operations, and reducing Days Sales Outstanding (DSO).
To manage all of the above with maximum efficiency, financial professionals are employing a collaboration model that achieves a delicate balance of people, systems, performance, processes and policies. This is especially efficacious in the area of receivables management – specifically in three key functions: order receipt and fulfillment; invoicing; and collection and banking.
Originally posted by Citigroup Inc | SOURCINGmag.com | US Jul 21
You can read the extract of Outstanding Idea: Outsourcing Trade.