CASH FLOW FORECASTING
Despite significant investments in financial and operational planning and performance management software, cash flow forecasting remains a key challenge for global manufacturers. The same is true of foreign currency exposure and working capital forecasting and management – two processes that are closely related to cash flow forecasting. Improving these processes is closely related to scenario planning. After all, effective scenario planning should be able to optimize against any objective, one of which is cash flow.
What’s not always appreciated is that the models required for supply chain planning are the same ones required for mature cash flow forecasting. In complex manufacturers, it becomes increasingly difficult to forecast cash flow without understanding the flow of inventory. Especially when faced with changes to, and variability in:
-
-
- Demand volume and mix
- Suppliers, lead times and pricing
- Product and customer portfolios
- Manufacturing and supply chain costs
- Financial and operational constraints
-
The problem is that traditional financial tools can’t cope with this level of complexity. We help financial and operational executives to address this challenge. Our holistic approach helps them to understand the nature of these gaps, along with options for fixing them. One such option being a “Plug-In” solution that augments existing financial and operational tools.
