To improve Pearson’s cash flow forecasting, the London based learning company is rolling out a new, artificial intelligence based solution. It interfaces with the company’s key finance and ordering systems to provide a detailed cash flow forecast in a single dashboard. Treasury is now leveraging the dashboard as the backbone for its iterative forecasting process, with an eye on constant improvement.
A variety of organisational factors make cash flow forecasting challenging in any large multinational organisation such as Pearson.
Our process previously involved local teams preparing forecasts to feedback into group treasury on a monthly basis, which they obtained from a variety of sources. The local business partners involved already had a wide variety of other demands on their time and we felt that the process was more time consuming for them than it needed to be.
The implementation of an enterprise-wide ERP system provided a great opportunity to look again at how we could re-imagine the process – simplify and make it more efficient, to allow for more time to be spent on insightful analysis.