Cash Positioning & Forecasting – Multi-Entity Medical Device Group
The Challenge:
A medical device manufacturer with 12 subsidiaries across 8 countries had limited visibility into daily cash positions requiring morning calls across time zones consuming 90 minutes daily. Cash forecasting was spreadsheet-based with 35% accuracy at 30-day horizon, resulting in $2.4M average excess cash earning minimal returns and occasional overnight borrowing ($15K monthly interest) due to unexpected shortfalls.
The Solution:
Deployed Dynamics 365 Finance cash flow forecasting integrated with bank connectivity APIs streaming real-time balance data to Fabric. Azure AI predicted cash flows by entity using historical patterns, payment terms, seasonal trends, and sales pipeline data. Power Apps provided treasury dashboard with consolidated multi-currency positions and scenario planning capabilities. Power Automate triggered alerts for projected shortfalls and investment opportunities. Power BI tracked forecast accuracy, bank fee analysis, and working capital efficiency with what-if modeling.
Result:
Cash visibility improved to real-time eliminating 90-minute daily calls, forecast accuracy increased from 35% to 86% at 30-day horizon enabling proactive treasury management, and optimal cash deployment generated $145K additional annual investment income. Unnecessary borrowing eliminated saving $15K monthly, and automated bank reconciliation reduced treasury workload by 60%.