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Procurement policies should apply to cash


Procurement policies should apply to cash not just goods and services


Why do firms not apply procurement policies to all assets? Procurement policies should apply to cash


Many companies have established procurement policies that require employees to obtain multiple quotes or bids for purchases above certain thresholds. These policies are designed to:

  • Ensure competitive pricing

  • Reduce the risk of fraud or favoritism

  • Comply with regulatory requirements (especially for government contracts)

  • Maintain transparency in the purchasing process


Procurement practices for most large organizations are well documented, and it has become common practice (based on internal parameters) that comparative quotes for supplies and services is regarded as standard practice.


So why do finance teams NOT do the same for what is arguably one of the most important assets, being cash at bank.


Based on our research, many organizations "flout" or "do not practice" organizational policies on adopting a multi-bank rate selection on cash funds. Part of the reason has been due to the manual effort involved, as well as the important bank relationships.


To avoid issues related to inadequate price comparisons, companies often:

  • Implement automated procurement systems that require multiple bids

  • Conduct regular training on procurement policies

  • Perform periodic audits of purchasing practices

  • Establish clear consequences for policy violations


For cash and bank deposits, this may not have been easy or practical before.


Likwidity solves these issues.

  • Fully automated end to end Request for Quote process on cash funds

  • Request for Quote accommodating core bank relationships with analytics and performance talking points.


Likwidity is a unique Deposit Platform designed to streamline and enhance the profitability of your cash and investment management through a fully automated Request for Quote process with your preferred banks.

Procurement policies should apply to cash!


Our platform has been instrumental in delivering substantial ROI for renowned clients like PWC.

With features like a comprehensive dashboard, maturity profiles, and automated interest calculations, Likwidity stands out as the first unconflicted platform with no hidden fees. I believe it could be a significant asset for your month-end reporting and overall financial management.

 
 
 

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