“Cashforce created a solution that interfaces directly with our ERP system and drills down to the actual order or line item that drives a particular cash movement”
Over 15 sites
Across 5 continents
From 5 days to 3 months
Borrowing Base Visibility Increase
Reduced financing costs
Company & Challenge
Interfood B.V. is a commodity trading partner in the dairy industry and sells or buys dairy products and its commodity derivatives around the world. Managing cashflows and determining working capital needs is a primary responsibility for the different finance departments around the world.
With $ 2 billion in yearly turnover, the food distributor manages more than 15 sites spread across 5 continents. The complex Microsoft Dynamics AX system and JD Edwards systems integrate their resource planning but it doesn’t tackle some industry-specific challenges. As the food distribution industry deals with low margins and high trade volumes in a complex distribution network, managing cashflows are essential. Interfood had been putting effort into optimizing their working capital & financing strategy, but their complex system didn’t allow accurate cash forecasts.
In order to anticipate on short-term liquidity requirements (up to 3 months) or excess cash positions, Interfood, therefore, required an advanced BI tool that could support with cashflow forecasting techniques. Existing TMS solutions only provided basic forecasting abilities and were unable to support the more complex product allocation methods.
“Cashforce created a solution that interfaces directly with our ERP system and extracts data from our General Ledger and order book, and therefore created a very insightful view of our data” according to Vincent Almering, Financial Director of Interfood, who managed the project internally. Cashforce was a key element in building a bridge between the finance department and the operational trading business by communicating daily insights on strategic meetings on the basis of financial data. The close collaboration with the Cashforce consultants resulted in a useful BI tool that is being used by the finance department of Interfood on a daily basis. That’s why we have started a further roll-out of the Cashforce platform to other offices as well.”
How Interfood benefited from using Cashforce
A solution tailored to Food Distribution
A tailored setup of Cashforce’s Cash Forecasting module was put in place in a very short timespan, creating relevant impact from the start.
A more accurate Cash Forecast
It helped Interfood to make projections in the time regarding cash flow, borrowing base and inventory, as well as various scenarios to analyse and define the best decisions.
An improved use of credit lines
A pro-active estimate of the necessary borrowing base enables a view on (possible) spending and investments in the future, leading to more substantiated analyses and decisions.