Since cash flow is the lifeblood of an organization, treasurers are increasingly using working capital management to add greater strategic value. Shared services centers (SSCs) can enable you to consolidate responsibilities and drive performance improvements across the enterprise.
1. OWN WORKING CAPITAL MANAGEMENT
Overseeing global working capital management through the SSC enables treasury to engage every constituent within an organization. Driving cash-flow efficiency and establishing treasury subject-matter expertise can expand your influence across different functions, such as receivables, payables, and supply chain management.
2. FOCUS ON END-TO-END TRANSFORMATION
Once treasury assumes leadership, it can begin making ongoing improvements. Because cash flow touches many organizational functions, you should expand your scope to include all cash functions, trading partners and other third parties. Extending your reach will provide a holistic view of process issues, cause and effect, and organizational interdependencies.
3. COLLABORATE WITH YOUR SSC
Consolidating receivables, payables and other functions within the SSC creates opportunities to improve working capital management across the enterprise. But many companies simply lift and shift cash-related processes to an SSC without standardizing and automating these transferred processes. As a working capital process owner, treasury can intervene prior to transfer to begin process improvement.
4. DRIVE CHANGE WITH BUSINESS OBJECTIVES
Treasury must also work with the SSC on a performance basis to fully leverage its operational capability and communicate improvement opportunities. Mature SSCs have comprehensive, transparent governance models that actively manage performance against strategic objectives. Since metrics drive process visibility, dashboards are key to day-to-day process management.
WHAT IS AN OPTIMIZED TREASURY PROCESS?
A mature, integrated SSC should span functions and deliver these benefits:
- Effectively produces the desired output
- Efficiently conserves resources
- Agilely responds to changing inputs and conditions
- Transparently shares the end-to-end process
- Consistently delivers repeatable outputs