Financial Supply Chain Management

Optimised information and cash flow in the value chain

Financial Supply Chain Management (FSCM), a financially oriented consideration of the Supply Chain, enables an optimisation of information and cash flows within the company and across company boundaries. FSCM is supposed to optimise the usability of working capital within the financial supply chain and to help reducing financing costs.

Furthermore, the following topics can be addressed with FSCM:

  • Collection and Dispute Management
  • Cash- and Liquidity Management, Treasury
  • Risk Management
  • Credit Management

The FSCM approach of J&M also includes the creation of essential foundations e.g. the company-wide consolidation of financial processes and a hereupon optimally aligned financial system (IT).

  • Financial SCM Quick-Scan: Performance analysis of the financial supply chain ad part of a first review of financial indicators and processes.
  • Financial SCM Solution Design: Development of company-specific solution strategies based on the performance analysis, in order to define measurements for improving the crucial financial supply chain.
  • Financial SCM Business Case: Evaluation of costs and benefits of a FSCM project based on a business case. Each procedure of redesign and of implementation of the solution is being aligned with company-specific conditions of the client.

Benefits of an optimised Financial Supply Chain

Reduction of DSO (Days of Sales Outstanding), strengthening of the internal financing ability due to improved cash cycle, efficient processing of billing and payment processes as well as reduction of costs of funds as part of an exact liquidity planning are the essential drivers for optimising the financial supply chain.

Clients of J&M profit from the advantages of an optimised financial supply chain. J&M supports companies with their comprehensive expertise to become a champion in financial SCM:

  • Financial Performance Metrics: Development to internal and external benchmarking and financial supply chain (e.g. DSO, Collection Effectiveness)
  • Increase of efficiency due to optimisation of financial business processes
  • Reduction of costs of funds due to transparent and faster information and optimisation of cash cycles

 

Contact Finance & Reporting

Lars Eickmann Lars Eickmann
Partner