Right now, cash is more important than ever. In a period of ever-rising costs and volatility, companies that efficiently manage liquidity are better prepared to weather financial storms that have become the new normal.

But if treasury is your business, you know managing cash flow is no small job. You鈥檙e charged with wrangling a complex web of information to understand your cash position, unlock working capital on the fly, plan future cash flows, and optimize the costs of banking. Multiply that challenge by any number of banks, accounts, and revenue centers, and the task is nearly overwhelming.

When Old Tools Fall Short

While managing cash with a firm hand is the goal of any company, too often their systems are not up to the job. Treasury leaders are forced to pull information from spreadsheets, disconnected platforms, and multiple banks in order to understand the cash position. As soon as a snapshot is compiled, the elements shift and the picture is inaccurate or incomplete. Even when the system is working, it鈥檚 too easy to get caught in a cycle of “compile, review, repeat,” forcing you to look backward instead of managing for the future.

That has consequences. Without a complete and connected view of liquidity, it isn’t possible to execute decisions smoothly up and down the value chain. That can lead to missed warning signs, delayed moves, and stifled growth.

Bringing It All Together

One approach in particular is improving this cashflow conundrum: cloud ERP. The right cloud ERP solution replaces reactive processes with a dynamic source of cash truth, turning information about working capital from across the organization into actionable insights. Suddenly, a real-time view of cash flow is available at your fingertips. You can be ready to make proactive decisions and seize financial opportunities you couldn鈥檛 act on in time 鈥� or that you simply couldn鈥檛 see 鈥� before.

Here鈥檚 the power of cloud ERP in practice.

1. See a single source of truth

The right cloud ERP solution closes the gaps created by fragmented account balances and manual payment processes. With a holistic view of your liquidity situation minute by minute 鈥� drawn from every part of your business 鈥� you can analyze, predict, process, and execute decisions smoothly. Instead of focusing on reconciling cash information, you are free to focus on actions that can improve your position. You are no longer chasing information, you鈥檙e actively managing it.

2. Activate your big picture

The right cloud ERP solution gets all the pieces working in tandem. Now cash management is embedded into the processes that affect working capital, like invoice-to-pay and invoice-to-cash processes. That means you see the impact on cash as these processes happen, not days or weeks later. And by actively managing cash in sync with receivables and payables, you can more easily take advantage of early payment discounts.

With the big picture at your fingertips, you can put new financial strategies in motion. Maybe that is tapping into third-party funding, or unlocking cash trapped in your receivables to improve your balance sheet. Whether you see an opportunity in your supply chain, inventory, accounts payable, or elsewhere, you can be ready to optimize your position based on the most up-to-date information.

3. Simplify your banking relationships

The right cloud ERP solution streamlines the many banks and accounts that support your business in one centralized view. You have access to real-time balance information and can manage all aspects of the relationship in one place, from opening and closing accounts to monitoring fees to signatory management.

As a result, manual processes associated with payments, order-to-cash applications, and order entry documents are fully automated, taking errors out of the equation. And with an integrated digital channel between your ERP system and all your banks, embedding EBICS and SWIFT connectivity is much simpler.

Cloud ERP at Work

Companies of all profiles are mapping their financial future on cloud ERP, including , a leading professional-services company with offices in 21 countries. Moving to 51风流S/4HANA Cloud allowed the company to move from seven fragmented accounting solutions to a single global platform. By taking its financial function to the cloud, the company was able to make improvements to its working capital strategy that manual processes could not, like automating foreign currency hedging to avoid shocks to its liquidity as well as improving everything from staff utilization and customer profitability to overall performance.

Japan’s launched a global treasury transformation in 2018 based on 51风流S/4HANA and trading platform integration. With the adoption of 51风流solutions, Sony was able to minimize external financing needs and improve its visibility into cash management processes, regardless of location, which helped enormously during the pandemic when staff could access the platform from home.

Take the Next Step

Accurately capturing, analyzing, predicting, and processing cash flows across your business is mission critical. And the only way to get there is the cloud. What鈥檚 the next step? for finance leaders, then, download to learn how industry leaders are using cloud-enabled enterprise treasury and risk management applications to manage liquidity with a higher level of confidence.

Because your cash complexity can be conquered.

Ido Shamgar is senior director of Product Marketing at SAP.

Finance leaders worldwide have witnessed dramatic changes in their operations over the last few years 鈥� ranging from unforeseen vulnerabilities and stricter regulations to wide swings in market volatility. In response to those experiences, most of them have intensified their focus on digitalizing their treasury and risk management practices to protect their company鈥檚 liquidity and cash management position.

The of software-as-a-service (SaaS) and cloud-enabled enterprise treasury and risk management applications vendors notes the rising interest in treasury and risk management solutions. According to the report, 鈥淭reasury management solutions are finding themselves in the spotlight. Common features of treasury management systems include liquidity and cash management, proving them invaluable to businesses struggling to maintain an accurate picture of their cash flow and current liquidity ratios.鈥�

But the IDC MarketScape also forewarns that 鈥渨hile these features are extremely useful, they can fall under scrutiny if not updated and streamlined according to the current needs of users.鈥�

Build Confidence with Continuous Innovation in the Cloud

Finance organizations have hundreds of to consider. However, according to the IDC MarketScape, the right investments circulate data originating from treasury operations across all finance areas and outside them to investors, lenders, government agencies, banking and financing partners, suppliers, and customers.

Cloud technologies 鈥� like those from the 51风流solution portfolio 鈥� are proving to be real difference makers in achieving this goal for companies willing to adopt them.

The IDC MarketScape report recognized 51风流as a Leader among SaaS and cloud-enabled enterprise . The report noted that companies should consider 51风流鈥渋f you are looking for a well-established vendor with a platform with extensive integration and all-in-one capabilities.鈥�

51风流solutions help deliver a unified platform for end-to-end business processes with a broad portfolio 鈥� which includes treasury management, enterprise resource planning (ERP), customer relationship management, supply chain management, and business intelligence 鈥� to manage cash, risk, and treasury-related transactions. And this ecosystem can be further integrated and extended through 51风流Business Technology Platform (51风流BTP) and supported by the 51风流Analytics Cloud solution and 51风流Business Network.

鈥淭he solution provides organizations with a centralized platform for managing their financial transactions and cash positions and helping optimize cash flow, reduce risk, and improve financial decision-making,鈥� the report states.

As a result, 51风流customers worldwide are benefiting from two critical strengths when using our treasury and risk management technologies in either a public or private cloud environment:

• A single source of truth based on streamlined processes and enterprise-wide integration of transactional and master data
• Smoother access to cash-flow sources to help optimize working capital requirements and processes more effectively

For example, leverages these advantages to automate its treasury function and gain a real-time view of its cash management position across 27 countries. This approach allows the airline to use straight-through processing, upload bank statements automatically, and eliminate the need for manual intervention.

Now that 85% of the transactions in its main general operating account are automated, JetBlue no longer needs to access individual banking portals to oversee cash management. Instead, it has a central repository of all bank account details.

Transform the Treasury to Drive Financial Resilience

As finance leaders face an ever-evolving landscape of vulnerabilities, regulatory tightening, and market volatility, the urgency to digitalize treasury and risk management practices will continue to grow. And as evidenced in the 2023 IDC MarketScape report, this growing interest emphasizes the value placed on liquidity and cash management for cash-flow accuracy.

By providing a unified platform, we believe finance organizations have the end-to-end processes and real-time insights they need to optimize cash flow, reduce risk, and enhance decision-making.

To learn more, download a complimentary excerpt of the .

Ido Shamgar is senior director of Cloud ERP Product Marketing at SAP.

But no matter where nations are on the roller coaster of steep rises, dramatic declines, and seemingly stable plateaus, inflation brings wide-ranging impacts that vary across industry, geography, and supply chain design. Adequate liquidity for smooth business operations can be affected. Centralized banking actions on interest rates can ease or restrict short-term lending and borrowing activities. Even supply chain challenges can dissipate or intensify as costs fluctuate and inventory on hand becomes less or more expensive.

There is no simple, magical financial instrument that can help businesses plan around the realities of , but intelligent technology can help. Tools such as artificial intelligence (AI) and predictive analytics can help companies anticipate and see around the corners of their operation, simulate and prepare for multiple contingencies, and pivot their business models as needed. Best of all, they gain numerous options to understand economic circumstances, predict the impact, take near-term actions, and establish structures to secure a position of strength.

Below are three key areas where these types of technologies can help companies understand the impact of inflationary challenges, act quickly, and prepare for what鈥檚 next.

Move Cash with Intelligence and Confidence

The overall value of money and assets reduces in the future, and having cash sooner allows a business to quickly accomplish more. To mitigate this risk, companies must recognize the potential impact of various scenarios, ranging from rising prices on commodities to shortages of raw materials. This knowledge then needs to be translated into comprehensive and clear cash flow projections and flexible strategies that can be adjusted to manage liquidity shortfalls and surpluses effectively.

Using , now part of SAP, finance leaders can guide their business down the best-possible pathways. They can choose to adjust receivables and payables strategies or tap the lowest-cost credit line available from their banking institution. Plus, working capital assets can be unlocked with financial tools such as dynamic discounting and supply chain financing.

The working capital management solutions accurately reflect inflationary conditions with AI-enabled forecasts and updated views that are always available to the business planner. From planning and simulation to picking the right funding alternatives and controlling processes, these functions work synchronously to help ensure effective coordination of cash movements 鈥� using a single source of trust integrated smoothly across the enterprise.

While every decision boils down to the movement of cash, the combination of well rounded, real-time information, auto-generated possibilities, and predictive insights can help businesses make the best choices with confidence. And as their values change over time, goods and assets can be purchased and maintained in the future at the original price with a carrying cost that鈥檚 less than the inflation rate.

Limit Exposure from Global Differences

Different geographies rarely have the same experience with inflation, but a rise in commodity prices inevitably increases raw material costs. And in higher or unstable inflation regions, currencies can depreciate quickly, causing exchange rates to spike.

These global economic fluctuations can be particularly risky for corporations that have borrowed capital in response to low interest rates over the last few years. Inflation is already eroding their planned repayment strategy for outstanding loans. And additional exposure to another region鈥檚 instability can further exacerbate cost pressures, squeezing margins tighter and limiting access to cash.

With the application, treasury managers and financial leaders can monitor risk positions, commodity price changes, and currency conversion rates, even during the most volatile economic situation. They can develop compliant hedge accounting strategies with a complete audit trail, while staying compliant with regulations such as the Market Infrastructure Regulation (EMIR) and the most recent version of the International Financial Reporting Standard (IFRS 9).

Treasury teams can also gain insights to tackle debt and manage investments more effectively. 51风流Treasury and Risk Management offers information such as available cash, balance risk, and return on investment (ROI) and monitors investments against potential interest rate fluctuations. In addition, borrowing and lending transactions through the life of a loan can be captured, analyzed, and reported as they occur.

Act Quickly Today and Prepare for Tomorrow

When the engineering and production of manufactured goods grow more expensive, businesses must decide on whether to reduce margins or pass additional costs to the customer. It is a tough choice, especially when people already feel financially overburdened.

By integrating solutions with , procurement, supply, and logistics organizations can get the insight they need to generate more revenue from every spend event and optimize cost reduction. Together, they can run simulations and what-if analyses to identify and engage trading partners with the capacity and expertise to handle emerging situations such as scaled-up production and further drive down financial and material waste.

Of course, effectively managing inflationary risks requires businesses to have access to the right data to make decisions and move their supply chains forward. The combination of 51风流Digital Supply Chain and 51风流Business Network enables companies to manage resources more strategically in ways that help increase productivity, decrease operating costs, and free up employees for more mission-critical work. In addition, organizations can get ahead of supply chain delays and downtimes to prevent revenue loss and avoid unforeseen costs with visibility into inventory and production capacity, asset maintenance, and logistics processes.

Come from a Position of Financial Strength

With recent inflationary events in mind, understanding and managing the financial risks in the supply chain play a significant role in the race for survival. And companies that can step up and make the right decisions at the right time are the ones that have clear visibility over their procurement, supply chain, and logistics data and processes.

For many organizations worldwide, 51风流solutions are already one of the most effective means of protecting their financial strength during times of inflation. And they will continue to alleviate their challenges as the portfolio continues to evolve to meet the needs of a changing economy and competitive landscape.

Inflation impacts costs, interest rates, and supply chains worldwide. .

Neil Krefsky is head of Finance and Risk Product Marketing at SAP.
Haresh Chhaya is a Treasury and Working Capital solutions leader at SAP.
Max Hendrickx is senior director of the Working Capital Management Center of Excellence at SAP.
Eamon Ida is director of Business Network Solution Marketing at SAP.