The Treasurer’s Guide to Trade Finance

Chapter 2 Understanding working capital management

of the bank’s service strengthens the

control over document content and quality

for both sides to the transaction. Suppliers

may view pro forma invoices in the system

before submitting and buyers are able

to approve, reject or query invoices after

receipt in their inbox.

Camden has been extremely proactive

in promoting e-invoicing to their supply

chain. Invoices are now delivered

electronically, directly into Camden’s ERP

system, enabling greater visibility and

faster payment processing.

The average implementation time for the

e-invoicing solution is three months, and

Camden achieved return on its investment

in well under a year. Now all incremental

savings go straight to the bottom line,

supporting the provision of public services

in the borough.

Conclusion

Understanding the company’s working capital

cycle is a core challenge for the treasurer.

At the very least, it allows the treasurer

to anticipate more accurately likely future

cash requirements and to establish more

efficient liquidity management structures.

By becoming more involved in the operation

of the business, the treasurer can also

gain a better appreciation of the nature of

the company’s supply chain, with a view to

supporting crucial trade relationships from the

perspectives of both supplier and customer.

We examine the core elements of trade in the

next chapter.