Headline:
Fully integrated planning and performance management processes can dramatically improve cash flow forecasting, while increasing profits by up to 50%
Introduction:
What’s the value of mature cash flow forecasting (CFF) processes? Apart from maintaining solvency, responses to this question typically include minimizing financing and foreign currency exposure costs. However, its value can extend well beyond these tactical sources. Especially in global manufacturers, where integrated planning and performance management (P&PM) processes provide the means to dramatically improve cash flow forecasting by effectively coping with complexity. Key point in this article includes the following:
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- Complexity erodes the value of strategy and costs global manufacturers upwards of 5% of sales
- Depending on the organization, these complexity costs can erode profits by up to 50%
- CFF accuracy is a leading indicator of P&PM maturity and the ability to realize this value
- Leading the integration of P&PM processes is central to Finance Transformation
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The full version of this article can be found here. It was published on the site of Corporate Treasury Management. Included in the article were several exhibits, further details about which are available in separate articles, the links to which are provided below:
Other articles on this website provide further details about these perspectives, which are provided below:
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- Strategic IBP: Driving Profitable Growth In Complex Global Organizations – View
- Maximizing IBP Value And Benefits To Finance – View
- Institutionalizing Integrated Reporting & Thinking Through Mature Planning & Performance Management Processes – View
- What Fully Integrated Rolling Forecasts and IBP Processes Look Like – View
- Key Features of Effective Finance Transformation and Business Partnering – View
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