It is clear that the pressure to optimize operations and improve financial performance is stronger than ever. In all organizations, regardless of the sector of activity observed, more must be done with less.
Fortunately, in 2020, McKinsey announced “A decade of efficiency gains” for financial departments. That was not to mention the effects of economic uncertainty and inflation, exacerbated by a global pandemic, war, and global political tensions. Finance departments are realizing that their long-term strategic transformations are too slow to maintain a competitive edge. They need quick results, but without disrupting their daily operations.
How does process mining work?
Exploring processes (Process mining In English) uses data traces from daily business operations and systems (such as ERP or CRM systems) to Create a vivid picture of your organization's processes. This includes all the deviations, bottlenecks, and hidden value opportunities. Above all, it works without disrupting your systems. In fact, Process mining is superimposed on your existing systems, which allows you to get information in real time without affecting your productivity.
From Findings to Decisions
Knowing your processes is an important first step, but you need to know how to exploit their hidden value. Process mining offers you not only the transparency you need so much, but also a plethora of tools and functionalities that allow you to Take Actions Based on Data.
Organizations can take advantage of alerts, automation, and pre-built applications - including by Our technology partner Celonis - to meet specific business challenges. For finance, this includes applications such as the duplicate checker, parked and blocked invoices, the payment term checker, and automations to remove payment blocks, create invoices, or update master data.
Our advice to improve your cash flow through process mining
There are numerous ways to take advantage of process exploration in the areas of customer accounting, supplier accounting, procurement, order management, and inventory management. But let's focus on The Three Easiest Ways to Get Value Quickly.
1. Accelerate Debt Collection
Through Process Exploration, You Can Streamline and prioritize your collections based on information based on data. Ensure that invoices are sent correctly before they are due, prioritize invoices according to their probability of payment, and send automated reminders to free up your employees' time for higher value-added activities.
2. Optimize payment conditions
Process exploration helps you Identify suppliers that offer the best payment terms and to understand why you don't always use the best offers. In accounts payable, you can go down to the level of the individual item or supplier to understand how the standard terms that are commonly used differ from the best terms available. You can also track and understand when unfavorable, unsuitable, or incorrect payment terms impact your DPO and set up automations to correct them.
3. Prevent Advance Payments
There is no need to pay in advance when this is not the case. With process mining, the days of advance payments are over. Advance payments may be due to inadequate payment terms, but very often it is simply a matter of priority. Instead of dealing with bills on a first-in, first-out basis, make sure you pay each bill at the optimal time andOptimize your payment schedule in order to optimize cash flow and maintain control over your organization's working capital.
About StoryShaper:
StoryShaper is an innovative start-up that supports its customers in defining their Digital strategy and the development of Automation solutions tailor-made.
Sources: StoryShaper, Celonis.
