Liquidity forecast
Challenge
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The financial planning department of a premium car manufacturer would like to improve its liquidity planning in order to optimise cash management and identify potential liquidity risks ahead of time
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After receipt of the invoice in the company, the timing of the cash outflow depends on various factors and thus leads to a more difficult planning of the actual cash flow on the reporting date
Solution
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In the course of a use case workshop, factors influencing the duration of invoice processing were identified
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In the subsequent hackathon, a machine learning model was developed together with the subject matter expert, which can predict the respective payment outflow to the exact day
Result
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Development of a machine learning model that has an average deviation of only 2.6 days by using features (such as document type, payment term and calendar week)
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The findings from the modelling can be used in the next step for process optimisation
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