Many members of the finance team — especially those in accounts payable — continue to rely on manual processes to support sourcing, invoicing, billing, and payables. Disparate tools and opaque systems can make it difficult to close the loop on the financial supply chain (FSC), which encompasses transactions related to the purchase of, and payment for, goods and services.
Progressive finance professionals are automating the source-to-settle process to provide greater visibility into all supplier interactions, improve working capital performance, and turn their focus to more strategic initiatives. “The CFO and supply chain leadership are both shifting from a backward-looking view to a forward-looking view,” said Rodolfo Santamaria, VP Supply Chain Operational Excellence and Compliance for ADT Security Services, at a recent Argyle Executive Forum virtual event on the modern financial supply chain.
Addressing Current Challenges, Including a Lack of Visibility
The FSC is a disparate collection of systems and processes, which makes it difficult to have complete visibility into performance. The typical scenario is: procurement makes a purchase, and accounts payable receives an invoice and makes payment.
A lack of common systems and processes for procurement and finance has hampered visibility, experts noted. “In the past, finance and procurement have been on different systems, which has made it hard to bridge the gap between financial and non-financial data,” said Nilly Essaides, Senior Research Director with The Hackett Group.
This eBook about finance will explore:
- The current state of the FSC, including challenges being faced and opportunities for improvement
- How business networks provide opportunities for finance and accounts payable to collaborate to reduce liquidity risk and drive value
- Uncovering opportunities to work more effectively with a global network of suppliers and customers — to manage risk and compliance, reduce costs, and identify areas for growth
- Implementing FSC processes supported by technology to help nance deliver even greater value in the future