While Supply Chain Management focuses more on the need to organize and anticipate the resources required to meet customer demand, FVCM targets transaction and interaction activities related to the flow of cash--from your customer's initial order, to payment and reconciliation, including cash forecasting and trend analysis.
By using FVCM technology, you can embed internal controls and thereby institute a more compliant and standardized approach to your accounts receivable.
The Aberdeen Group has been conducting research on FVCM and has identified companies that have successfully implemented these solutions.
The Aberdeen Group states that the new FVCM products and services being developed will help companies with risk management by offering a more sound method of monitoring customers, resulting in less write-off of bad debt, less fraud, and fewer extended payments.
By implementing an FVCM solution that sits on top of any ERP or A/R system, you can still leverage the foundation provided by that underlying system while protecting yourself from technological changes and market shifts.
Rather than operating as two separate forces, sales and finance can use FVCM tools to improve customer response times and decrease the billing cycle.
An enterprise FVCM solution is comprised of tools that enable companies to gather and disseminate internally and externally stored information, provide users a single and centralized access point to your organization, facilitating online collaboration and managing customer expectations.
The goal of an enterprise FVCM solution is very much aimed at achieving a competitive advantage by delivering a higher level of value and service to your customers.
While the tactical advantages of FVCM technology are clear, the strategic benefits are even more compelling.