Actionable points to help ensure liquidity: NOW 3. Insight-driven procurement The liquidity control tower should leverage spend Case in point optimization capabilities and coordinate with Procurement to analyze all open purchase orders and reduce non- An airline’s cash reserves essential spending. These insights allow the CFO to identify could be increased by large areas of spend and indicate possible commercial identifying non-essential renegotiation of rates and payment terms, including activities and non-critical payment deferment. This can help reduce the SG&A spend commodity contracts that can by as much as 30%.7 be placed on hold. Organizations can also leverage dynamic discounting capabilities to strike a balance across the ecosystem, such as between their cash needs and the needs of their suppliers and customers. Commodity price analytics and supplier market intelligence can inform supplier negotiation strategy and can also help manage the impact of volatility for key materials such as ethanol and crude oil. 11 Managing Total Liquidity in Response to the COVID-19 Crisis Copyright © 2020 Accenture. All rights reserved.