# Heavy winter sweaters, coats pile up at stores as warm weather threatens holiday shopping season
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-11-25
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Heavy Winter Sweaters and Coats Pile Up at Stores Amid Warm
Meta Description: Unseasonably warm weather is impacting sales of winter clothing, leading to discounts at major retailers like H&M. Shop now for deals on knitwear and outer
URL: https://financedigest.com/heavy-winter-sweaters-coats-pile-up-at-stores-as-warm-weather-threatens-holiday-shopping-season-2html

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By **_Krishnan Raghunathan_** _**,** Head of Finance & Accounting Services at_ [_WNS,_](http://www.wns.com/) _explores how a digitally transformed finance department can give enterprises the ability they need to improve cash flow and revenue through better use of data and improved analytics-driven visibility._

Businesses everywhere are scrambling to recover lost revenues and protect cash flow. But as countries globally grapple with a dreaded second wave of the pandemic, imposing far more stringent localised lockdowns and new restrictions, it is set to be the hardest winter in living memory for many sectors.

The likelihood of winter peaks, so often the saviour of sectors such as travel and hospitality, [benefitting businesses](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") is diminishing rapidly. While many have pivoted to a greater or lesser degree, few have been able to offset the impact of falling [revenues on cash flow](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit"). Even retail, riding an e-commerce boom in many regions, is finding itself in choppy waters, with [17 percent of consumers](https://business-reporter.co.uk/2020/07/08/retail-reimagined-rapid-revenue-recovery-in-action/) switching brands due to the economic pressures and changing priorities caused by the pandemic.

As one McKinsey article [notes](https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-cfos-role-in-helping-companies-navigate-the-coronavirus-crisis), “With some companies losing up to 75 percent of their revenues in a single quarter, cash isn’t just king – it’s now critical for survival”. Where then do [businesses find new sources of cash to sustain](https://www.financedigest.com/nfts-live-streams-sustainable-businesses-and-social-shopping-what-to-prioritise-in-commerce-this-year.html "NFTs, live streams, sustainable businesses and social shopping – what to prioritise in commerce this year") their operations through the coming months?

**[Tapping Overlooked Cash](https://www.financedigest.com/central-banks-start-turning-off-the-cash-taps-2.html "Central banks start turning off the cash taps") Opportunities**

For many, the answer could depend on whether they have [digitally transformed their finance](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications ") department. Why? Because many organisations are sitting on unidentified opportunities, funds that could be vital in shoring up [businesses over the next few months or plugging the gap between operating costs](https://www.financedigest.com/simple-ways-to-reduce-business-costs.html "Simple Ways to Reduce Business Costs") and government bailouts. Yet those that have been slow to start their [digital transformation](https://www.financedigest.com/financial-digital-transformation-an-opportunity-not-a-threat.html "Financial digital transformation: An opportunity, not a threat") journey are at a disadvantage;. At the same time, it is possible to identify these hidden seams in an analogue organisation, the process is time-consuming, manually intensive and, without the right digital tools, prone to [human error](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches").

Where deploying digital tools helps is by bringing speed, automation and reliable data to the fore. Connecting them with [digital finance](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") and accounting systems can give businesses clear insights into how money is being spent, where wastage is occurring, and where opportunities for optimisation exist.

It might be something as simple as automating the accuracy checking, issuing and chasing of invoices and late payments. This could reduce errors and invoice disputes and ultimately lead to faster payments. Accuracy and organisation are also important in billing – better records [enable faster billing for work](https://www.financedigest.com/smart-working-versus-presenteeism-enabling-productivity-in-a-post-pandemic-hybrid-work-culture.html "Smart Working Versus Presenteeism: Enabling Productivity in a Post-Pandemic Hybrid Work Culture") completed, and in turn, should deliver quicker payments.

It could also be around having the ability to review the [supply chain](https://www.financedigest.com/amazon-introduces-seller-storage-service-to-tackle-supply-chain-woes.html "Amazon introduces seller storage service to tackle supply chain woes") and procurement data and identify where a supplier is subsidising a larger customer’s product line through drawn-out payment terms, or where a variety of vendors are on different terms across the business.  Using that data and overall knowledge of the [business to negotiate better terms that work for both supplier and customer can create new opportunities](https://www.financedigest.com/electric-vehicle-transmission-market-emerging-growth-analysis-future-demand-and-business-opportunities-2027.html "Electric Vehicle Transmission Market Emerging Growth Analysis, Future Demand and Business Opportunities 2027"). It could even be to identify late-paying customers, determine the reason for late payments, and use that intelligence to develop products or financing solutions that continue to support those customers (and improve loyalty) without increasing the burden on the [balance sheet](https://www.financedigest.com/ecbs-villeroy-lays-out-plan-for-shrinking-balance-sheet.html "ECB’s Villeroy lays out plan for shrinking balance sheet").

![Krishnan Raghunathan](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/krishnan-1-450x573-1737287551534-compressed.jpg)

Krishnan Raghunathan

**Generating Reliable Insights for Faster Decision-making**

To do any of these manually would take months, generating data slowly that would quickly go out of date. But digital finance departments have evidence they can trust to inform business decision-making. That’s because old, manual [processes built around Order-to-Cash lack the flexibility and agility that businesses require in today’s markets](https://www.financedigest.com/downstream-processing-market-is-expected-to-cross-us-25-4-bn-by-the-end-of-2030-at-a-cagr-of-13.html "Downstream Processing Market is Expected to Cross Us$ 25.4 Bn by the End of 2030 at a CAGR of ~13%"). The fact is that even before the global pandemic crisis, the pace of digitisation across all [sectors was demanding new approaches to finance](https://www.financedigest.com/is-automation-key-to-esg-success-in-the-banking-and-finance-sector.html "Is automation key to ESG success in the banking and finance sector?") and book balance.

The opportunities are significant – from cognitive credit and [improved forecasting](https://www.financedigest.com/italy-slashes-2023-growth-forecast-but-sees-public-finances-improving.html "Italy slashes 2023 growth forecast but sees public finances improving") accuracy to enhanced customer analytics. All use similar tools, based on [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") and quality, trusted data. Cognitive credit can be deployed to quickly make decisions on whether to advance or restrict credit, based on individual [company positions and available data](https://www.financedigest.com/the-logo-of-french-cloud-computing-company-ovhcloud-is-seen-on-a-data-center-building-in-strasbourg-france-october-13-2021-reuters-christian-hartmann.html "The logo of French cloud computing company OVHcloud is seen on a data-center building in Strasbourg, France, October 13, 2021.  REUTERS/Christian Hartmann"). Doing so enables [businesses to either capitalise on opportunities](https://www.financedigest.com/autonomous-vehicles-market-emerging-growth-analysis-future-demand-and-business-opportunities-2026.html "Autonomous Vehicles Market Emerging Growth Analysis, Future Demand and Business Opportunities 2026") (for instance, agreeing credit for a supplier that has run out but is a supportive and integral partner) or avoid risk (in the cases where a business might be in administration).

With more accurate forecasts, businesses can better manage their currency purchases and deposits, selling currency that is not required or buying more where predictions identify an [upcoming demand](https://www.financedigest.com/child-resistant-single-dose-pouches-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-by-2031.html "Child Resistant Single Dose Pouches Market | One the Most Booming Industry in Upcoming Years Due to Global Demand by 2031").

It is the same with customer analytics – with a greater understanding of customer needs, businesses can make decisions based on the right mix of the product (and how it meets demand) and [supply chain](https://www.financedigest.com/eliminating-payment-barriers-the-future-of-supply-chain-payments-is-digitization.html "Eliminating Payment Barriers: The Future of Supply Chain Payments is Digitization") suitability (such as production costs and location in relation to customers).

In many ways, the events of the [past year](https://www.financedigest.com/how-has-growth-of-marine-scrubber-systems-market-taken-off-over-the-past-few-years.html "How has Growth of Marine Scrubber Systems Market Taken Off Over the Past Few Years") have accelerated the process. In doing so, the problem is the [pandemic has also accelerated the speed at which failure to act can lead](https://www.financedigest.com/virtual-cards-will-help-lead-the-travel-industry-into-a-post-pandemic-boom.html "Virtual cards will help lead the travel industry into a post-pandemic boom") to obsolescence. Therefore, it is vital that businesses, and more particularly their finance and accounting departments, kick start their [digital transformation](https://www.financedigest.com/critical-learnings-in-digital-transformation.html "Critical learnings in digital transformation "). This will enable them to deploy the tools and [analytics that is needed to capture data](https://www.financedigest.com/top-5-data-analytics-trends-for-2023.html "Top 5 Data Analytics Trends for 2023"), generate insights and drive fast, accurate decision-making to uncover previously untapped sources of cash and reverse revenue degradation.

**The Importance of Digitally Enabled** [Finance Teams](https://www.financedigest.com/protecting-the-finance-team-from-burnout-to-drive-employee-retention.html "Protecting the finance team from burnout to drive employee retention")

Forward-thinking CFOs have already begun the process of digitising their departments, but for those that have been slow to start, now is the time to push forward. It is only through digital tools and analytics that finance leaders can identify both the internal and external [opportunities to recover revenue](https://www.financedigest.com/the-potential-impact-of-coronavirus-covid-19-for-riveting-tools-market-revenue-opportunity-forecast-and-value-chain-2021-2028.html "The Potential Impact Of Coronavirus (Covid-19) For Riveting Tools Market Revenue, Opportunity, Forecast And Value Chain 2021-2028") and improve cash flow. Whether that’s releasing working capital, minimising revenue loss and accelerating revenue recovery, reducing total cost of ownership or enhancing customer retention – only digitally [enabled finance](https://www.financedigest.com/top-fintech-trends-for-2021-enabling-smart-and-secure-finance.html "Top Fintech Trends for 2021 Enabling Smart and Secure Finance") teams will be in a position to capitalise and, ultimately, bolster business performance during what will be a trading period like no other.


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