The entry level cost for a decent TMS has fallen significantly in the last years, notes Royston Da Costa, assistant group treasurer with Ferguson, in a detailed insights article published by Treasury Today.
Even so, it can be hard for treasuries to explain the net advantages of a new system, to higher decision makers when it is time to finance the investment. Because not all improvement is about doing the same thing as today with less resources. It is also about gaining new capabilities.
“No longer acceptable”
“It is no longer acceptable to hide behind the rationale highlighted under the ‘Problems’ section, mainly because most corporates cannot afford to ignore the advance of treasury technology,” Royston Da Costa writes.
One hurdle is that treasury departments are usually operated as cost centres, with investment in technology viewed as an additional cost with very little return.