Before the pandemic, CFOs associated resilience and organizational agility with the ability to anticipate and adapt to changing consumer demands and experiences
. However, the pandemic completely overhauled corporate dynamics by disrupting supply chains, changing consumer patterns, and encouraging a remote way of working. The WNS Global CFO Survey 2020 showed that many CFOs are looking for strategic ways to get ahead of these challenges.
Here are four ways that CFOs can refocus to respond to the new dynamic normal.
Reinforce the Supply Chain
Global supply networks have been impacted by COVID-19, prompting many firms to rethink their procurement practices. The WNS survey indicates that over 32% of CFOs rank the continuity of their supply chain as one of their three most significant challenges. The primary difficulty facing the manufacturing and consumer packaged goods (CPG) industries is maintaining supply chain stability.
CFOs can engage with procurement teams to review the supplier base in order to increase supplier resilience, as well as lead their organizations in implementing new supply chain models and processes. Digital technology enables the ability to make orders automatically and spot deficiencies more rapidly. It can also enable supply chains to become more flexible. Advanced analytics-based dynamic forecasting provides data in real-time so that inventory systems can be quicker and more reactive to demands.
Drive Digital-powered Decision Making
The WNS survey shows that increasing visibility is among the top priorities for 46% of CFOs. When aggregated financials are compared with overall performance, things are different. These comparisons also don't provide the organization with an adequate picture of the organization’s action steps. In such a scenario, data analytics, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) offer a clear representation of information and key metrics. These cutting-edge solutions have empowered decision
makers to pinpoint profitable products and services and mobilize investments into some products on the basis of solid data. Through close collaboration with data teams, CFOs may be able to achieve success in establishing and managing performance insights for sales, investments, marketing expenditures, and other areas of activity.
While customer demands are dipping across many industries, CFO's have a new capital challenge at hand. They must make sure their companies are adequately equipped to deal with the impact on income and its implications on investment and capital spending. Using a financial and governance framework, the information concerning receivables, payables, inventory, taxes, risks, and cash flow may all be integrated into a unified view of liquidity for CFOs.
Gear Up for Disruption
CFOs must help ensure their companies are adaptable enough to handle unforeseen turmoil as well as general political and economic unpredictability. Blockchain and other digital technologies establish a distributed system for frictionless departmental collaboration. Hence, the CFO and the wider organization can build predictions and forecasts based on a single source of data.
Rebuild but reimagine is what organizations and CFOs must do in order to thrive in the new dynamic normal
. A stable supply chain, data-based decision-making, smart capital management, and gearing up for any future disruption is the way to go.