In any profit-making enterprise, minimizing the time between the moment the goods have been sold to the time payment is collected is crucial for maintaining good cash flow. The importance of keeping accounts receivables to a minimum is more sensitive in industries which depend on volume-sales with razor-thin profit margins. Let's consider Supply-chain-management in such environments.
A PC manufacturer is in the business of assembling "custom" built PCs receiving customized orders on the web. The firm buys PC components from hundreds of vendors using a 'Just-in-Time' inventory model. Because vendors sell in small batches, they need payment on delivery - no long accounts receivable credit cycles. Payments flow continuously between the PC maker and hundreds of global vendors. In a modern-day efficient supply chain management environments, Straight-Through-Processing between buyers and sellers, commonly abbreviated in payments parlance as STP, are a prerequisite for the chain to function efficiently. No human interactions are expected as invoices and payments exchanges transact between parties.
Consider payment transactions between the PC manufacturer and a hard drive manufacturer, assuming invoices are paid through bank-to-bank automated payment transactions.
When payments get lost or delayed, the originating bank (buyer) and the receiving bank (seller) respectively have to probe deeply where payments are stuck and where the delays occurred. The problem doesn't end there- bedlam occurs all over. When payments are delayed, the hard drive maker runs into negative cash flow situations, and is then subject to angst from its own vendors, stopping hard drive supplies to the PC maker. On the other end, the PC manufacturer shop floor comes to a grinding halt for want of hard drives. Production managers, buyers, accounting and shipping personnel spar with each other, pointing fingers. Repeated occurrences of such supply-chain payment malfunctions ultimately bring loss of revenue and loss of reputation for the banks.
Banks can alleviate such situations by deploying a robust monitoring solution across the enterprise. Tivoli Monitoring comes in many flavors and its abstraction of data being monitored caters to the needs of the observer.
An operational IT admin may want to monitor CPU utilization, memory usage, disk usage across the swath of heterogeneous platforms and technologies in the banking data center.An application developer or performance analyst may want to understand the decomposition of a payment functions into transactions the application memory usage pattern and the response times of individual requests. A SOA architect may want to analyze relationships between payment service requests and the implementation artifacts such as J2EE beans, CICS calls, and database requests.. A business analyst may want to monitor payment processes to spot payment bottlenecks, inefficiencies and duplication of functions
Tivoli Monitoring solutions address them all!
Lack of monitoring increases operational risk for banks. This can cause delays in payments, that, if left unchecked, indirectly increases intraday-credit risk for the banks. Delays in payments can affect the buyer's bank, seller's bank, the buyer and the seller. Payment services monitoring becomes crucial here. Tivoli Monitoring tools allow integrated payment solutions to function smoothly by overseeing their operations. This lowers payment costs- a huge profit eater. Monitoring provides a higher service quality to banking payment services and results in more productive, efficient STP throughputs. Faster payments become a key differentiator to the bank.[Read More]