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The vast majority of treasury teams view boosting working capital as a high priority for their organization, but many spend less than 10 percent of their time improving it. See more findings from research conducted by Kyriba, the leader in cloud-based treasury management solutions, and Aite Group, an independent research and advisory firm focused on business, technology, and regulatory issues.
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SURVEYMoving Treasury from Cost to Profit Center
with Supply Chain FinancePowered by AITE Group
July 11, 2013
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2
Survey Demographics
*Visibility*
Results strongly biased towards SCF adoption in North America
Asia19%
North America72%
Europe6%
Central-South America
3%
Country of Residence(N=105)
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 3
Reverse Factoring ... An Opportunity
*Visibility*
Reverse factoring programs are in early adopter stage among corporations
6%
8%
10%
77%
Yes, but it is self funded (i.e. no banks involved)
Yes, and implemented
Don’t know
No
Q. Do you have a reverse factoring program in place?(N= 105)
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 4
Reverse Factoring: Asia largest # of adopters
*Visibility*
An opportunity around the globe, particuarly in the Americas
58%
67%
82%
100%
Asia
Europe
North America
Central-South America
Share of Respondents that Do NOT Have Reverse Factoring Programs in Place
(N= 105)
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5
Working Capital Optimization
*Visibility*
Significant portion of a treasurer’s time is dedicated to optimizing working capital
None2%
I am not sure4%
Less than 10% of my time
36%
25% of my time35%
50% of my time14%
75% of my time9%
Q. How much of your time (in %) do you spend on improving your company’s working capital?
(N= 105)
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
Working Capital Priorities
*Visibility*
Unsurprisingly, Receivables are most important
16%
2%
4%
14%
2%
1%
15%
10%
19%
25%
31%
45%
31%
56%
31%
Inventory
Receivables
Payables
Q. From a working capital perspective, what priority do you place on the following?
(N=105)
Unimportant Of little importance Moderately important Important Very important
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7
Early Payments
*Visibility*
Early payments are a source of liquidity for suppliersProcurement and Finance appear rather tactical
54%
71%
51%
46%
29%
49%
Your company’s procurement department
Your company’s suppliers
Treasury or CFO at your company
% of Respondents
Q. Do the following parties request/offer early payments? (N=105)
Yes No
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8
Payables Discounts
*Visibility*
Finance department still not proactive in adopting strategies to improve working capital ratios. Procurement figures confirm rather
tactical approach
47%
31%
50%
53%
69%
50%
Your company’s procurement department
Your company’s suppliers
Treasury or CFO at your company
% of Respondents
Q. Do the following parties request/offer additional discounts? (N=105)
Yes No
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10
Additional Discounts
*Visibility*
Additional discounts are also within current practice terms
15%
5%
3%
11%
21%
29%
16%
N/A
>15%
[10%-15%]
[7%-10%]
[5%-7%]
[2%-5%]
[0-2%]
[0%]
% of Respondents
Dis
cou
nts
ave
rag
e
Q. Additional discounts requested [average %]?(N= 105)
© 2013 Kyriba Corporation. All rights reserved. 11PRIVILEGED & CONFIDENTIAL.
Take aways
Successfully implemented supply chain finance programs provide many benefits• Improved Working Capital, better returns on excess cash/liquidity, Risk Management are
some core benefits
There are many key internal and external stake holders that influence supply chain finance programs• Within an organization Treasury, Procurement, and Accounts Payable, as well as
Suppliers and Banks, are all key stakeholders in a supply chain finance program
© 2013 Kyriba Corporation. All rights reserved. 12PRIVILEGED & CONFIDENTIAL.
White paper
Download AITE Groups complimentary white paper sponsored by Kyriba on “Treasury Management Systems & Supply Chain Finance” at:
http://info.kyriba.com/TreasuryManagementSystems-and-SupplyChainFinance_SS.html
© 2013 Kyriba Corporation. All rights reserved. 13PRIVILEGED & CONFIDENTIAL.
Contact us
Contact Kyriba:Contact AITE:
[email protected]@aitegroup.com
