Process Mining in Finance – Optimising Return on Invested Capital

This webinar is the third webinar discussing process mining for the finance department. Learn about the value Apolix offers with your data to identify maverick buying and process compliance. Today we delve into optimising Return on Invested Capital (RoIC), which measures how well a company generates profits with its assets. Through efficient cashflow management, businesses improve their RoIC. Therefore, you should receive payments early and settle supplier’s invoices close to the due date. In today’s video we show how Apolix helps you to improve your RoIC with process mining.

Are you keen to see the value of process mining at other departments? On our website you find more webinars covering use cases for warehouse management, customer service and manufacturing.

Early Paid Invoices

Every company has to pay invoices on a regular basis, impacting the liquidity of the business. In order to pay for these invoices, your business needs a sufficient amount of money on the bank. However, this money does not generate significant returns. Consequently, a high liquidity to pay for these short-term debts, puts pressure on the RoIC. In the video we see the business makes on average a 15% return on its investments. In other words, it costs the company €0.15 per year to keep one euro on the bank.

Enhanced cashflow management helps to reduce the impact of this issue. First, we need to ensure we receive money from our customers as early as possible. The accounts receivables department is responsible to do so. Secondly, payments to our vendors should be as close to the invoice due date as possible, which is the focus of this video. By optimising both the accounts receivables and accounts payables departments, we reduce the required liquidity to pay for our short-term debts. Consequently, you are able to optimally allocate resources to profit-making investments and improve your return on invested capital.

Based on the data from your IT system, we identify these early-paid invoices. Process mining makes it possible to objectively measure the impact of the invoices and find root causes. As the first step, we take action by comparing used payment terms and contracted payment terms.

Process Mining with Apolix

Are you curious about the other actions we take to improve cashflow management? Apolix supports organisations by creating value for you and your clients through data.

Can’t wait to get started with process mining yourself? Start your own process mining adventure in Celonis Snap with the help of this video! Subscribe to our Youtube channel to stay updated on all our videos