A lockbox is a bank-operated address to which a company’s customers can send their payments. The primary benefit of lockbox services is increasing speed and efficiency in the accounts receivable process. The bank opens the incoming mail, deposits all received funds into the company's account, and scans the payments and any remittance information. Lockbox accounts reduce the effects of processing float and the overall cost of cash processing, which are major risks associated with cash collections. In combination with electronic transfers of account information or outsourced receivables matching, electronic payments and lockboxes will greatly reduce the level of effort required to register payments in customer accounts. Automated cash mobilization (ACM) also helps reduce the effects of processing float.
One of our leading practices to consider for your accounts payable process is to develop strategic business alliances with suppliers and involve them in developing better ways to process accounts payable.
There are two main goals that companies with leading practices strive to achieve in the warehousing process: to provide value-added services such as product customization and to move those products through the warehouse into the hands of the consumers as quickly as possible. Companies that achieve these goals follow the leading practices discussed below.
Is The Treasury Function Ensuring Superior Financial Services for Your Company?
The treasury function at a company bears responsibility for managing financial transactions, safeguarding deposits, earning a return on reserves and obtaining credit. At a minimum, the staff of the treasury function selects and supervises providers of financial services, such as bankers and lenders, who will produce superior results at a fair price. In companies that apply leading practices, the treasury function staff develops relationships with bankers and lenders who provide more than simple banker-to-customer services: the relationships progress into collaborative business partnerships where the bankers help the company manage financial risk and develop the resources worldwide to meet its strategic financial objectives.
Total quality management requires commitment and persistence. Quality will always have a cost, but many companies are demonstrating that investments in quality always provide returns. Cost-of-quality reporting essentially views costs of quality as "good" costs and "poor" costs. The "good" costs are those incurred by the company in delivering customer satisfaction. The "poor" costs arise from:
Are you using strong strategic communication processes that build great relationships between your organization and the public?
Public relations has gained importance and visibility in the recent years as our marketplaces become more competitive and the exponential growth in proliferation of media. The importance of a well-crafted public relations campaign has never been greater. This includes not just generating coverage and visibility, but also fostering meaningful relationship with customers, clients, business partners, employees and the public.
Globalization, increased transparency of business activity, pervasive media coverage, and the growing complexity of business and business relationships have increased the ethics and compliance risks for organizations. There is greater likelihood of wrongdoing being exposed by the media, watchdog groups or government agencies or through a firm's internal systems. Illegal or unethical acts can be done intentionally by people of bad character or unintentionally by people who made decisions without full knowledge of what they were doing. The damage to a firm's reputation and the huge costs associated with fines and litigation can destroy a company. Therefore, managing for legal and ethical excellence has emerged as a critical as well as morally imperative function for all organizations.
Outsourcing has become a keystone of major business operations to the point that it’s almost a given that large companies will move certain expensive business processes and labor-intensive activities to a third-party. Is this always the best option?
Technology has greatly expanded the methods of creating, editing, maintaining, transmitting and retrieving records. From creation to disposition, records in electronic recordkeeping systems may now utilize a variety of media. An example of an electronic recordkeeping system is one in which a personal computer generates the original records, which are subsequently stored on a secondary electronic resource. While paper copies of the electronic records may be printed for distribution, the original records are transferred electronically.
Performance is defined as the throughput of business transactions compared to user needs, expectations or requirements. IT performance risk is the risk that a company’s IT infrastructure will be unable to perform at required levels due to inferior internal operating practices, technology and/or external relationships that threaten the demand for the organization's products or services.
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