Accelerate cash flow for a stronger future

Whether to power growth and innovation or build strength, it is critically important that businesses manage their cash flows well. Along with ensuring access to enough cash for the short term, companies must also strategically manage their working capital to support long term goals.

Senior finance executives at global firms say that improving cash flow is one of their top three priorities. But a lack of integration among enterprise functions is reducing transparency on cash flow performance and driving suboptimal working capital decisions.

For many, the adoption of digital technologies such as artificial intelligence (AI) and automation has been limited, leading to errors and rework. And poor visibility and lack of analytical insights into working capital drivers are preventing them from better aligning the efforts of commercial and operational functions. Also, there is little awareness among firms of excess cash tied up in inventory and debtors.

Companies could release cash from balance sheets by optimally managing their working capital. This means that freeing up trapped cash can fund companies' short-term operational needs and even support some of the longer-term strategic investments to spur growth. Companies can also use freed-up cash to invest in increasing their resilience to face the ongoing macroeconomic volatility.

Genpact helps you deploy a cross-functional liquidity management team and take a holistic approach to identify and implement ways to improve cash flow across receivables, payables, and inventory management processes. We bring industry and functional knowledge with analytics, AI, and machine learning models to help you maximize your working capital performance.

Receivables optimization: Our order-to-cash solutions can help you analyze internal and external data with AI and reduce lost revenue and boost working capital by prioritizing customers that pay on time. We can help you automate invoicing and collections processes to minimize disputes and use analytics to refine your collections strategy to improve accounts receivables management.

Payables optimization: Within procure-to-pay, we can help you rationalize payment terms with suppliers, optimize supplier base and buying channels, reduce duplicate payments, and ensure contract compliance. We can help you evaluate supply chain financing or invoice discounting options that offer suppliers the choice to take early payment in exchange for a discount.

Inventory optimization: Within supply chain, we can help you manage inventory better and improve on-time orders with better sales planning, advanced demand-forecasting techniques, and order-backlog analysis. This will shorten your cash conversion cycle and strengthen your working capital position.

Cash-flow forecasting: We bring in driver-based cash-flow forecasting using AI and machine learning to enable forecasts in real time, support short-term investment needs, and boost longer-term business resilience. This gives you complete visibility and insights into the cash conversion cycle.

And with our Working Capital Analyzer, we provide you with interactive and accessible dashboard reporting about receivables, payables, and inventory – rich with insights and commentary. To make sure you're on track, the solution lets you monitor performance and see if your days sales outstanding, days payable outstanding and days inventory outstanding, are in line with the best in the field.

We partnered with a spectrum of companies across industries to help them rethink working capital management and uncover trapped money.

• A pharmaceutical firm improved its cash flow by $500 million with an analytics-driven efficient collections strategy and payment terms optimization
• A Europe-based frozen foods company reduced working capital requirement by over 20% with enhanced visibility on its cash conversion cycle across regions
• A global high-tech distributor reduced DSO by six days to improve cash flow by $50 million by redesigning its disputes resolution process.