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Maersk has been a World’s largest container shipping company serving customers across the globe. The company brought technology into the heart of financial process, spearheading the industries, digital transition to support their customers’ evolving needs and future growth. Forecasting cash flows is an integral function of Treasury. Their current forecasting capabilities are hindered by excessive manual work and lack of data visibility. The forecasting problem is fundamentally split into two separate processes. Firstly, the short term forecasting which relies mainly on input from FP&A team. Secondly, daily liquidity management which relies on same day payment advice provided by different teams by email. The emails are used to make manual adjustments to the forecast on a daily basis which has high of an error means that we are regularly paying overdraft fees, keep a high buffer of uninvest funds with huge bank reserves, incur fees from making frequent trades and risk breaching credit exposure limits. Their proposed solution is use of statistical model to forecast operational cashflows automatically predict daily and short term liquidity broken down into currency, entity, source of cash flow and time bucket. It allows to manage daily liquidity, optimize use of cash pools and make investment and funding decisions. Predictive Liquidity Forecast in SAP Analytics Cloud has been leveraged for secure, scalable and user friendly self-service planning and analytic solutions for most optimistic and realistic outcomes. Two models are prepared for Predictive & Prescriptive analytics Leveraging the Augmented analytics to Predict and Using Rule Based logic to deliver the future cash flows with a tightly cohesive architecture for a "No touch" Cash flow forecasting in the SAP Analytics Stack (SAP S/4HANA, BW/4HANA, HANA , DI and SAC ). Beyond forecasting for short term cash flow, they are working to provide insights to determine the Customer Payment Patterns and Vendor Payment methods for early-warning signals on customer defaults, anticipate expenses throughout the forecast period by the Central treasury team interconnected with all the financial process (ATR/PTP/OTC /Treasury).
You will:
- Learn about forecasting cash flows.
- Learn how to automatically predict daily & short term liquidity broken down into currency, entity, source of cash flow and time bucket.
- Understand predictive Liquidity Forecast in SAP Analytics Cloud and how it has been leveraged for secure, scalable & user friendly self-service Planning & analytic solutions.
- Get to know the “No touch" Cash flow forecasting in the SAP Analytics Stack.
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