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Emagia Introduction
Agenda
Top Priorities for Todays CFO
Forecast-to-Fulfillment
Supply
Replenishment Chain
Strategy
Dispute
Customer
Management Strategy
Sales
Cash
Management
Receipts
Cash
Collection
Customer
Service
Revenue
Management
Billing
Order
Fulfillment
Transportation
Risk
Management
Distribution
Contract
Management Accounts
Receivable
Sales Order
Credit Processing
Check
Inventory
Warehousing
Product
Management
Supply Chain
Management
Forecasting
Sales Order
Forecasting
Production
Scheduling
Raw
Production
Material Planning
Planning
Production
Accounts
Payable
Cash
Management
Payment
Processing
Disbursement
Management
Purchasing
Strategy
Budgeting &
Forecasting
Expenditure
Management
Invoice
Processing
Discrepancy
Management
Originating
Requirements
Selection
& Negotiation
Ordering
& Contracting
Receiving
Procure-to-Pay
Situation
Solution
Streamlined entire order-to-cash processes, staff, management focus and
adopted specialized technology
Working Capital Management focus right from Board and C-level executives
Result
Reduced DSO to high 50s
Increased cash by equivalent of
four month of sales
Reduced bad debt expense by
millions of dollars
Magazine
Potential Cash Flow From
Unlocking Working Capital
Inventory
Receivables
$49 Bn
$91 Bn
$71 Bn
$162 Bn Opportunity to
Drive Cash Flow Improvements
Source: McKinsey & Co. Study
of Top 24 U.S. Corporations
Payables
Greater Need
to Borrow
Higher Interest
Expense
Higher Debt-to
Equity Ratio
Cash Inflows
Lower Return
on Invested
Capital
Receivables
Payables
Time
Cash Outflows
Cash Flow Visibility, Control and Predictability Ensures Better Working
Capital Management and Cash Conversion Cycles
EMAGIA CORPORATION 2005 PROPRIETARY AND CONFIDENTIAL
Typical Challenges
Accounts
Receivable
Higher DSO
Increased Bad Debt Expense
Slower Quote-to-Cash Cycle
Higher Operational Expenses
Higher Revenue Risk
Accounts
Payable
Sub-optimal DPO
Increased Administrative Expenses
Lost Discount Savings
Cash Flow
Forecasting
Decision
Support
Working
Capital
Optimization
Cash Flow
Process Management
Best
Practices
Based
Standardization
Transaction
Management
Effectively Driving
Profitable Growth
Working
Working
Capital
Capital
Optimization
Optimization
Balancing Risk
And Performance
Managing
Complexity
Cash Flow
Process
Process
Management
Management
Cash
Cash Flow
Flow
Transactions
Transactions
Management
Management
Standardization
Simplification
Controls &
Efficiencies
& Risk
Management
Strategic Focus
Sustainable
Growth &
Shareholder
Value
Time
To Working Capital
Actualization
Cash Flow
Process Management
Advantages
Single version of truth
Working Capital
Platform
JD Edwards
BaaN
Legacy
Systems
Cash Flow
Process Management
Working
Capital
Optimization
Cash Flow
Process Management
Advantages
Cash Flow
Process Management
Corporate
Treasury
CFO
Cash Flow
Performance
Management
Cash Flow
Performance Dashboard
Credit
& Collections
Accounts
Payable
Accounts
Receivable
Cash Outflow
Manager
Shared
Services
Outsourcing
Providers
ERP 1
ERP 2
Legacy
Systems
Cash Flow
Process
Automation
Specialized
Technology
Platform
Working Capital
Optimization
Spreadsheets
Corporate Oversight
& Governance
Emagia Working
Capital
Management Solution
Global A/R & Cash Flow Data
Consolidation Platform
ERP 1
Baan
SAP
North America
ERP 2
Baan
Leqacy
Other
Systems
MFG
Pro
European
Legacy
Legacy
Asian/Pacific
ROI Component
Benefits
ROI Value
Acceleration of collections
Reduction of DSO by 15 days and
compressed Cash-to-Cash cycle
Improved cash forecasting
accuracy
$14 Million
$1 Million
Streamline invoice-to-cash
System used by collectors at over
45 sites on three continents
Point of
Collection
Distributor
Dealer
End Consumer
Agent
Point of
Collection
Goods Flow
Payment Flow
Mean Absolute
Percentage Error
5%- 55% before Emagia
Emagia
Go Live
Mean Absolute
Percentage Error
2%- 20% after
Emagia
ROI Component
Benefits
ROI Value
Interest Expense
Savings from Improved
Cash Flow
- Acceleration of collections
- Reduction of DSO by 4.5 days
- Average Deductions balance
decreased from $2.9 mil to
$1.1mil
- Improved cash forecasting by
up to 30% in some cases
$3 Mil
- Redeployment of excess
resources
- Reduce overhead costs
$100K
Industry
Business Challenges
Results
$12 Bn Electronics
Contract Manufacturer
$3 Bn Agricultural
Chemicals Manufacturer
$2 Bn Staffing Services
Company
Chargebacks &
deductions negatively
impacting revenue by
over $17M