Optimize Cash Flow and Improve Financial Control with a 13-Week Cash Forecasting Solution

Background

Our client is a leading global biopharmaceutical company that focuses on developing medicines for psychiatric and neurological disorders. Their patient-inspired science, integrated research strategy, and sophisticated development capabilities enable them to pursue the development and commercialization of innovative new medicines. With a team of over 2,100 professionals, they are headquartered in Europe and have R&D and manufacturing facilities in the US.

Challenge

The Treasury team relied on Microsoft Excel for cash flow planning, forecasting, and reporting, which required extensive manual effort to consolidate and reconcile data across various systems. With each new data update, like the addition of customers, significant time was spent adjusting the Excel model to accommodate these changes. The team aimed to reduce the time spent on data collection and model adjustments, allowing them to focus more on analysis and reporting for better cash flow insights.

Approach

Keyrus assisted with designing, developing, and deploying an automated 13-week cash forecasting model in Anaplan. The model includes a detailed projection of expected cash receipts and disbursements from operating activities, cash from investing and financing, and bank balances. An automated process was developed to automate source data loads and calculate strategic cash flow metrics. The model was configured for users to drill down from summarized reports to source transactional data. Treasury, Finance and Accounting can quickly conduct scenario modeling for instant insights and improved decision making.

Key results

Automate data collection and cash flow calculations

Enhanced visibility into cash flow drivers

Improved decision making enabled by scenario modeling

Benefits

The treasury and finance teams can now spend their time analyzing and reporting cash flow data instead of collecting and reconciling data. They can efficiently produce a clear, detailed view of cash inflows and outflows over a 13-week period, enabling them to better understand their short-term liquidity position. Scenario modeling capabilities empower the team to simulate different financial outcomes, helping them make informed decisions based on the potential risks and rewards of various strategies.