While companies often look at departments like logistics and distribution to optimize their supply chains, the treasury team is often overlooked. However, your treasury team plays an essential role. By understanding your crucial role in managing cash flow, optimizing working capital, and mitigating risk, you can leverage the expertise of your treasury team to improve the integrity of your supply chain.
Why the treasury team?
The responsibilities of the treasury team go beyond financial management. They are tasked with managing banking relationships, monitoring cash flow for operational needs, and ensuring the smooth running of payment operations. These roles and responsibilities only grow as a business expands globally, highlighting inefficiencies in payment operations that can create additional supply chain challenges.
For example, cross-border payment delays can slow down the entire supply chain, while uncertainties about payment times can unnecessarily strain supplier relationships. According to the Mastercard Borderless Payments Report39% of SMEs surveyed said that cross-border payments slowed down their supply chain, and a quarter reported that suppliers had refused to work with them due to uncertainty about payment times.
The rise of automation in supply chain finance
Fortunately, companies are increasingly recognizing 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 driven this shift towards automation. according to a PYMTS Report, 70% of SaaS companies surveyed plan to invest in accounts payable automation in the next year. This report further highlights the growing recognition among businesses of the benefits that automation brings to the table.
One of the main reasons driving this increase in investment is the need to improve visibility into cash flow and expenses. In fact, 52% of companies respondents in the previous report identified better visibility as their top priority for automation. Companies can capture, monitor and analyze financial data in real time by automating financial processes. This level of visibility enables organizations to make informed decisions, identify potential bottlenecks or inefficiencies, and take proactive steps to optimize cash flow.
Automation offers companies a range of additional benefits, especially when it comes to reducing manual efforts. according to a Strategic Treasurer and TD Bank survey, manual processes are the most important 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 OpenTextTMSTP Financial Center develop Electronic payment solutions designed to provide treasury teams with end-to-end automation of 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 provides real-time insight into financial data. The solution provides a powerful combination of technology, people, and processes 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 receivable process, from invoice capture to payment processing. This automation reduces manual effort, allowing finance teams to focus on strategic activities. The solution also provides real-time visibility into invoice status, allowing finance teams to track spend and monitor approval workflows effectively.
Additionally, STP Financial Hub helps organizations manage 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 improves overall financial efficiency.
The importance of integration
The integration capabilities offered by STP Financial Hub allow companies to address the complex challenges that often hinder growth. A 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 improving the efficiency of financial workflows.
Isolated connections and interfaces within an organization can slow down the flow of data and make collaboration between different departments and systems difficult. STP Financial Hub addresses this problem by integrating siled systems, facilitating seamless information sharing, streamlining processes, and improving communications.
STP Financial Hub also helps organizations in their mission to modernize their technology infrastructure by bridging the gap between legacy systems and newer, more flexible applications. This integration allows companies 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-ready technology landscape, adapting to changing customer demands and maximizing their operational potential.
Provide the missing link
Companies may not immediately recognize poor treasury operations as the main contributor to supply chain inefficiencies. However, its impact can be significant. By recognizing the connection between these factors, organizations can proactively improve payment visibility, optimize treasury operations, and ensure the smooth running of their supply chain.
Recognizing the importance 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 across their overall supply chain operations. If you would like to learn more about how STP Financial Hub can unlock opportunities for your treasury team, Contact Us.