Tangible Treasury Management System ROI results
A business case for a treasury management system should prominently feature tangible estimates of ROI.
The following enhancements derived from the treasury management system will result in actual savings that can be directly linked back to the TMS investment decision:
More precise determinations of cash on hand and cash trends can lead to better spending and investment decisions. For example, opportunity cost reports on idle cash can be used as a fundamental KPI matrix for the treasury team to ensure that the organisation earn a higher investment yield for a more extended period, paying down debt ahead of schedule, or paying invoices early to take advantage of vendors’ invoice-discounting programs.
Improved visibility and efficiency of FX-related processes can help companies more effectively hedge against currency fluctuations. This area can really drive a significant ROI and one that will resonate with CFOs.
Bank Fee analysis and optimisation of banking relationships:
Because the TMS becomes the central access point for all banking, the costs savings and increased security in user access are significant. Bank accounts can be managed in one place, including account open/close processes with signatories and document account management. The improved access and visibility of multiple bank relationships provide a wealth of information to analyse and scrutinise bank charges and cost savings that could run into the millions of rands.
Improvements in the productivity of treasury and IT staff due to automation of repetitive manual tasks and bank connectivity solutions are significant. A TMS that manage and maintain all bank connectivity relieves internal IT teams from managing ERP bank integration tasks and thus allows organisations with more bank processing freedom.