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Saturday, September 5, 2009
Manoj: What is SAP's view on SLA for financial supply chain and what role does technology play?
Posted by Tip at 5:28 AMRajamani: Corporates looks at cash management as outsourcing some of their activities, be it funds, collection, payments to a bank, and even today if you see, cash management services are being set up. You will find SLA getting established, between the service provider and the service taker. Today you find the nerve system of financial management of a corporate is definitely being connected to a bank and where working capital is managed / funded by a bank. So the expectation really comes as to what is reflected as an SLA.
Ravi Shankar: The first step actually is to understand the business. If you go and tell the customer I can really do cash management for you, he would say you do not understand my business. If I say I would like to do collection for the agri sector, the government will ask what you understand of the business - do you know where the smallest value comes from, where the value goes to, etc. So, today most bankers here would see the client groups they are addressing and build people skills and industry skills around them and then they work with technology partners to build solutions specific to them and SLA comes after that. Within India itself there are so many defined trade routes which have changed now because companies are moving in a different chain, finding cheaper sources or alternate sources. So all of this is becoming more specialized and every bank today is not saying I am offering everything to everybody.
Pathak: I would like to add that this SLA is still at the stage of evolution. There are no standards and terms and conditions which can be uniformly applied to all corporates - it basically has to be decided on a case to case basis.
Vijay Kumar: The corporates not only have to face competition in India but also internationally. So, now the corporates also want to focus on their core business, so they look forward to the banks to find solution for their payments and collection mechanisms. For that purpose I think channel financing is the best option the banks can provide to the corporates.
Ravi Shankar: The first step actually is to understand the business. If you go and tell the customer I can really do cash management for you, he would say you do not understand my business. If I say I would like to do collection for the agri sector, the government will ask what you understand of the business - do you know where the smallest value comes from, where the value goes to, etc. So, today most bankers here would see the client groups they are addressing and build people skills and industry skills around them and then they work with technology partners to build solutions specific to them and SLA comes after that. Within India itself there are so many defined trade routes which have changed now because companies are moving in a different chain, finding cheaper sources or alternate sources. So all of this is becoming more specialized and every bank today is not saying I am offering everything to everybody.
Pathak: I would like to add that this SLA is still at the stage of evolution. There are no standards and terms and conditions which can be uniformly applied to all corporates - it basically has to be decided on a case to case basis.
Vijay Kumar: The corporates not only have to face competition in India but also internationally. So, now the corporates also want to focus on their core business, so they look forward to the banks to find solution for their payments and collection mechanisms. For that purpose I think channel financing is the best option the banks can provide to the corporates.
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