Organizations that receive business check payments from their customers often do not take the time to evaluate their wholesale lockbox strategy to ensure a cost-efficient and streamlined order-to-cash process. Sharyn is a cash manager who has inherited multiple lockboxes due to recent acquisitions. She faces disparate systems, redundancies, and many commercial lockbox providers. She is looking to streamline and improve her company’s lockbox network and prepare for future growth.
Sharyn evaluates her lockbox network to find opportunities to improve the order-to-cash process. These improvements will accelerate cash flow and expedite funds available for operations, enhancing her company’s net interest. They will also improve the organization’s visibility of remittances received, allowing process owners to make more timely decisions. Sharyn identifies inefficiencies, assesses the end-to-end receipt processes, and performs a lockbox study to assist in the analysis. She then uses the results to determine the optimal number of lockboxes and their locations.
Sharyn’s proposals will streamline the process with the help of a selected bank that offers state-of-the-art industry methods in lockbox processing. She incorporates these tools into her solution, adopts best practices, and installs performance measurements to track her progress. The result is increased working capital levels through accelerated cash flow and greater visibility.
When is the last time you assessed your wholesale lockboxes? Have you considered the impact of organizational changes on your current network? Are you employing the latest tools for improving cash flow and visibility? Optimal wholesale lockbox solutions improve your cash flow and increase working capital levels.
In the Accenture Academy course Evaluating Wholesale Lockboxes for Optimal Cash Flow
, you will examine the evaluation and restructuring of an existing wholesale lockbox network, which will provide a guideline of how you can implement an optimal solution in your own firm, ensuring efficiency and accelerated cash flow.