Consumer packaged goods (CPG) companies often grapple with managing liquidity and cash flow efficiently, yet many fail to utilize the expertise of their treasurers effectively. These professionals bring specialized insights into cash flow predictability and financial health enhancement, but their roles are frequently misunderstood or undervalued. This issue persists despite the potential for treasurers to contribute significantly to strategic goals and long-term operational efficiencies.
What barriers do treasurers face in CPG firms?
The role of treasurers within CPG firms is often restricted by a lack of collaboration with other departments and limited recognition of their strategic value. According to PYMNTS Intelligence data, many department leaders fail to see treasurers as influential decision-makers, with only 43% acknowledging their impact. Additionally, treasurers frequently cite encountering three or more obstacles that hinder their ability to collaborate effectively, which in turn limits their influence on financial outcomes.
How does lack of collaboration impact cash flow predictability?
When treasurers are excluded from strategic discussions, the predictability of cash flows tends to decline. Treasurers facing limited involvement often report missed opportunities for financial optimization and increased difficulties in maintaining liquidity. Enhanced collaboration, on the other hand, could allow treasurers to implement strategies that improve operational stability and reduce unnecessary debt burdens for CPG firms.
Past analyses of similar issues in the CPG sector reveal a consistent disconnect between treasurers and other decision-making bodies. While previous reports highlighted the importance of breaking down departmental silos to achieve financial optimization, the recent findings underline that the gap remains unresolved. Earlier studies also emphasized the unrealized potential of treasurer-led initiatives to streamline cash management systems and reduce risk exposure, showcasing a recurring theme in the industry.
The study, conducted by PYMNTS Intelligence and Citi, surveyed 100 CPG treasurers and department heads between April and May 2024. It highlighted the disconnect between treasurers’ capabilities and their perceived value within organizations. Data-driven insights suggest that removing collaboration barriers could unlock new avenues for growth and financial efficiency in the highly competitive consumer goods market.
Overcoming these challenges requires CPG firms to reassess the strategic role of treasurers. By fostering better communication between departments and recognizing the treasury’s contributions, firms can improve not only cash flow predictability but also operational resilience. The report emphasizes that empowering treasurers to participate in decisions can lead to long-term gains in growth and stability.
For readers in decision-making roles, the findings underscore the importance of integrating treasury functions into broader strategic initiatives. Shifting organizational perceptions about treasurers’ roles is critical for firms aiming to optimize their financial operations. This shift can be pivotal for firms looking to enhance competitiveness and achieve sustainable growth in a challenging economic landscape.
