The financial but also organizational plan

It is a profession, widespread in the anglo-saxon world, which is not equivalent in France and in the rest of continental Europe: "cash manager". "Beware, this trade exists in the facts as they are, more often, corporate treasurers or"credit managers"who perform these functions, prevents Jean-Louis David, Secretary General of the Association of credit managers (AFDCC). "But, it is true that in its transverse form of optimization of flow and a global project and sustainable business, it is rare," he concedes. However, this last form function "cash manager" implies all the trades and hierarchy of a company and is located in the heart of the overall process of management.

This is certainly not the most noble aspect of the financial function because that is a "cash manager" It ensures not to accumulate the delays in payment by clients, not too early to pay suppliers and, if applicable, to manage the stocks of goods.

In other words, it is in charge of the management of that financial mean by HRW, need in working capital "cash manager" is indeed also call "BFR Manager." An arcane acronym who never followed but financial management module which refers to the means mobilized by enterprises for their daily operation. Three essential letters for any society concerned of economies.

And, in this regard, the conclusions of the ninth annual study () of the consulting firm strategic Hackett-REL to the companies first 1,000 European are straight: the mismanagement of their BFR has generated a shortfall in their estimated annual balance to... EUR 500 billion. A nice sum which could find its usefulness for investment purposes. "After having improved their cash, the companies and their management prefer more operational performance and growth of the activities of their companies in the management of their BFR", notes Andrew Ashby, President of Hackett-REL Europe.

The price of independence

However, the establishment of terms of settlement and cashing more effective, more fine tools of relationship management client and supervision short-term stocks, can have a direct effect on the strength of a company. "By reducing the time of settlement of customers seven days, the company has done 50 million euros of savings", remembers Patrick Thibault, a former Director of financing and cash in Amec Spie. However, before reaching such an outcome, must be put in place all the necessary cultural change organization perennial. Because a punch operation has only a limited scope: focus from time to time on the public claims sit-in kicked in town halls or try to thoughtlessly providers times does not go very far.

The most effective is to include the overall management of the BFR in the heart of a strategic thinking. "The need for working capital management is not that a financial case, it is also that of directions trades and of operational", warned Philippe Boué, Chief Financial Officer of Schindler France (elevators and escalators).

The "cash manager" or BFR Manager must therefore double its technical capabilities of a strong organizational expertise. And he must also know contact. "Because, to him is to clearly understand the purpose in the business." "For example, explain that the price of independence and professional autonomy is necessarily by a policy of settlement not too long times to not banker client", says Patrick Thibault.

Act on stocks

Admittedly that, more often, the step from making orders and billing for the crib is often neglected in the "back office". "Of the persons who have a very administrative role." "And, in the event where they would try to go beyond this role, they are reduced to evolve in a diffuse responsibilities maquis", considers Frédéric Doumenc, Director associate of Resulteam, a specialist law firm management and optimization of the post client. "It then go fishing information;" "that is, for example, to run after the commercial or production staff", continues Frédéric Doumenc.

The task is arduous, get serious about the management of its BFR is certain to win every time. The financial but also organizational plan. "But nothing is without the impetus of the branch," warns Fabrice Doumenc. Then, should appoint a conductor capable of helping teams on customers, suppliers and inventory.

Manage disputes

The acceleration of payments by clients through implementing acceleration billing and service reminder systems, analyses of typology of laggards customers, effective management of disputes and remedies... "And that recovery is the case for all, including the case of the commercial, it is imperative to take into account a standard cash in the business bonus," said Philippe Boué.

Policy home to providers can, through the establishment of procedures for the purchasing group or the replacement of advances by of sureties. "A company should apply to its suppliers equivalent treatment to that it gets its own customers, which has positive consequences in the long term," said Nick Williams, senior business advisor with Hackett. Stocks, their management optimization passes, as appropriate, by techniques strained flows, wages on stock, buffer stocks or stocks equipment to treat capital.

All of this is however pointless without a work for educational field with a staffing (responsible for recovery, recourse to an outside firm) human resources and materials management software, establishment of indicators of rotation client (reporting system).

Aficionados of the HRW All companies and especially those under LBO debt, seeking any force of cash. "If it works well, from a client account of EUR 100 million, it can expect 20 in the six to twelve months, EUR 20 million," said Patrick Thibault. The management of the BFR is also a relevant indicator of the management performance. However, as noted by Hackett, only 4 of European companies have managed to improve their BFR through a structured and comprehensive approach.