CFOs Prioritize Cash Flow and Procurement Systems in Upgrades

Cash flow and working capital are much on the minds of chief financial officers in 2023, with many turning to specialized systems to manage these functions.

Procurement is the most common area receiving retailer and manufacturer investment at present, but change is coming. Retailers are poised to focus more on working capital and credit innovation going forward, while manufacturers are increasing their focus on both accounts payable (AP) and accounts receivable (AR) innovation.

The study “Payments Technology’s Future: Retailers, Manufacturers Seek Better Workflows,” a PYMNTS and Corcentric collaboration, surveyed 250 CFOs at retailers and manufacturers to reveal shifting priorities for managing financial workflows.

Looking at the investment priorities of retailers and manufacturers, there are clear trendlines around procurement and payables among retailers, while for manufacturers there’s a similar focus on procurement workflows, with more attention being paid to receivables.

“With some other key functions in the finance area, the share of retailers and manufacturers planning to make investments is projected to increase,” the study found. “For example, 27% of manufacturers are investing in their AR systems, while 55% plan to invest in the future. Among retailers, 35% are investing in their AR systems, while 42% plan to make investments in the future.”

Additionally, 38% of the companies that have invested in liquidity forecasting and management applications are making these investments now or plan to continue doing so.

There’s also more planning “for managing working capital and credit,” according to the study. “Among manufacturers, 42% are investing in their working capital and credit systems, and 44% plan to make these investments,” as 31% of retailers are spending to improve working capital and credit systems, and 53% are readying for such investments.”

Not to be left out is inventory management, as 40% of manufacturers and 30% of retailers that have already spent on this function are increasing investments.

“Among the companies that have not invested in inventory management applications, 23% of manufacturers and 27% of retailers are making these investments or plan to make them in the future,” the study found.