The cascade of manual processes underlying global trade has a lot of scope for a CFO to automate them. Read to know how CFOs can bring a difference in Global Trade Management.
Today, the expectations of a CFO’s role have diversified and increased encompassing a wide range of issues, from risk management to more significant support of the organisational strategy.
As such, the rapidly expanding array of data being gathered within all major functions has to play through the hands of the CFO. However, it is also required that finance executives must develop their skills and confidence to manoeuvre data.
To complete the global trade cycle optimally, having a defined set of responsibilities is the need of the hour.
Scope For Automation
Today, every supply chain irrespective of the business requires automation which includes tracking and providing visibility into the end-to-end process to optimise supply or distribution chains.
Across all these flows, companies need to deploy the right tools that support the automation of standard workflow procedures, synchronise and reconcile the exchange of data, automate document generation, provide exceptional management and bestow detailed and flexible visibility into orders and shipments while complying with security, compliance, and other regulatory requirements.
Challenge Lies In Process Flows
A significant challenge to deal with global trade is the process flows which run through the entire international transaction, right from the purchase or sales order to payment initiation.
The three critical elements of global trade are:
- The Flow of Goods
- The Flow of Funds
- The Flow of Information
Finally, tracking the flow of information is the key to follow and manage information anomalies, documentation and interaction with trading partners to create secure audit trails and settle transactions including pro-active information alerting, document creation and management, trading partner integration, and audit trails.
The process flows are susceptible to delay if any of the manual processes are affected and hence, targeting them is the ideal way to start.
Companies bank upon GTM solutions to improve the performance of businesses. Global Trade Management (GTM) solutions are integrated software services to synchronise the end-to-end global trading process.
Application of GTM solutions to automate all trade documents, match them with each other, and check their compliance to current regulations will result in more efficient labour utilisation, fewer errors, penalties and fines, and smoother operations.
GTM solutions are structured to handle the highly complex and ever-changing global trade.
With a single platform technology and cloud computing, companies are achieving the goals of improving trade cash flow and efficiencies by utilising GTM solutions. GTM solutions can provide extracted information from global supply chains in the form of a timely invoice, letter of credit, dispute management, or trade financing data that is required to carry out professional cash management planning.
Through advanced access to invoices and invoice replacements, responding to new or altered data to plan for the next days’ receipts can be streamlined. Based on this information, funds can be deposited and borrowed as the day closes.
CFO: Getting Into The Act
CFO has a prominent decision to make by promoting analytics for both strategic and operational decision-making. The person should have a willingness to invest in a small group of talented resources who can help determine and implement the analytic capabilities at priority.
Today, CFOs must be aware of the digitised form of globalisation, the know-how of business done across borders, how rapidly competition moves, and where the economic benefits are flowing.
CFOs must analyse and emphasise that the biggest benefits of trade flows go to countries at the centre of the global network. Countries at the periphery of the network of data gain even more than those at the centre. The convergence of globalisation and Digitalisation means that CFOs will need to reassess their strategies in spite of being in the infancy stages of this phenomenon, enormous opportunities are still at stake.