While companies will commonly examine departments like logistics and distribution to optimize their supply chains, the treasury team often goes unnoticed. However, your treasury team plays an essential role. By understanding their crucial role in managing cash flow, optimizing working capital, and mitigating risks, you can leverage the expertise of your treasury team to enhance the integrity of your supply chain.
Why the treasury team?
The treasury team’s responsibilities extend beyond financial management. They are tasked with managing banking relationships, overseeing cash flow for operational needs, and ensuring the smooth functioning of payment operations. These roles and responsibilities only grow as a business expands globally, highlighting inefficiencies in payment operations that can create additional challenges for the supply chain.
For example, cross-border payment delays can slow down the entire supply chain, while uncertainties over payment times can strain relationships with suppliers unnecessarily. According to the Mastercard Borderless Payments Report, 39% of SME respondents said that cross-border payments slowed their supply chain, and one quarter reported that suppliers had refused to work with them because of uncertainty over payment times.
The rise of automation in supply chain finance
Fortunately, businesses increasingly recognize the value of investing in automated solutions to gain greater control and visibility over their financial processes. The desire to gain greater control and visibility over a wide range of payment processes has also fueled this shift toward automation. According to a PYMNTS report, 70% of surveyed SaaS companies plan to invest in accounts payable automation in the coming year. This report further highlights the growing recognition among businesses of the benefits that automation brings to the table.
One of the primary reasons driving this surge in investment is the need for improved visibility into cash flow and expenses. In fact, 52% of the firms surveyed in the above report identified better visibility as their top priority for automation. Businesses can capture, monitor, and analyze financial data in real time by automating financial processes. This level of visibility empowers organizations to make informed decisions, identify potential bottlenecks or inefficiencies, and take proactive measures to optimize cash flow.
Automation offers businesses a range of additional advantages, especially when it comes to the reduction in manual efforts. According to a Strategic Treasurer and TD Bank survey, manual processes are the most significant obstacle in treasury operations in the next 12 months. Automated solutions eliminate the manual efforts and potential errors associated with traditional, paper-based processes. By investing in automation, companies can streamline and standardize their financial workflows, increasing efficiency and reducing processing times.
Introducing STP Financial Hub
In response to these growing needs, OpenText has leveraged OpenTextTM STP Financial Hub to develop ePayment Solutions designed to provide treasury teams with end-to-end automation for financial processes, including accounts payable and accounts receivable management. By seamlessly integrating with existing ERP systems and financial applications, STP Financial Hub streamlines financial workflows and offers real-time insights into financial data. The solution provides a powerful combination of technology, people and process designed to control disbursements, cash, and liquidity while presenting a single centralized view of cash management processes across multiple banks, countries, divisions, and subsidiaries.
By leveraging STP Financial Hub, organizations can automate their entire accounts payable and receivables process, from invoice capture to payment processing. This automation reduces manual effort, enabling finance teams to focus on strategic activities. The solution also provides real-time visibility into invoice status, allowing finance teams to track spending and monitor approval workflows effectively.
Moreover, STP Financial Hub assists organizations in managing cash flow by automating the collection of payment information and providing real-time visibility into accounts receivable. Speeding up payment processing and improving cash flow management enhances overall financial efficiency.
The importance of integration
The integration capabilities offered by STP Financial Hub allow businesses to address the complex challenges that often hinder growth. One significant advantage of STP Financial Hub is its ability to integrate with existing systems, including ERPs and other financial applications. This integration ensures the accuracy and timeliness of financial data, reducing the risk of errors and enhancing the efficiency of financial workflows.
Siloed connections and interfaces within an organization can delay data flow and hinder collaboration among different departments and systems. STP Financial Hub addresses this issue by integrating siloed systems, facilitating seamless information exchange, streamlining processes, and improving communications.
STP Financial Hub also aids organizations in their mission to modernize their technology infrastructure by bridging the gap between legacy systems and newer, more flexible applications. This integration enables businesses to take advantage of the capabilities offered by modern solutions while capitalizing on investments previously made in legacy systems. By embracing integration, companies can create a more agile and future-proof technology landscape, adapting to evolving customer demands and maximizing their operational potential.
Providing the missing link
Companies may not immediately recognize poor treasury operations as the primary contributor to supply chain inefficiencies. However, its impact can be significant. By acknowledging the connection between these factors, organizations can proactively enhance payment visibility, optimize treasury operations, and ensure the smooth functioning of their supply chain.
Recognizing the significance of treasury operations in the supply chain ecosystem is vital to achieving greater efficiency and success in today’s global marketplace. By frequently engaging the treasury team in strategic growth conversations and leveraging solutions like STP Financial Hub, organizations can deliver improvements throughout their overall supply chain operations. If you want to learn more about how STP Financial Hub can unlock opportunities for your treasury team, contact us.