Transportation companies depend on roadmaps, so why are they overlooking their treasury teams?
Despite their essential role in managing cash flow, liquidity planning, and risk management, today’s transportation treasurers are frequently excluded from strategic decision-making. This neglect is not merely an oversight; it represents a significant error.
The transportation and logistics industry is confronting extraordinary financial challenges. Escalating costs, heightened regulatory scrutiny, and changing consumer preferences compel businesses to reevaluate their financial approaches. Treasurers have the potential to be crucial players in overcoming these obstacles if they are given the chance.
By 2025, the treasury department should not be viewed merely as a back-office number-crunching unit. It can become a powerful asset worth leveraging.
According to the PYMNTS Intelligence report “The Impact of Misunderstood Treasurers in the Transportation Sector,” a disconnect exists between treasurers and their peers in other departments within the transportation sector. Although 60% of treasurers regard themselves as vital to strategy, only 33% of department heads acknowledge their impact. Consequently, businesses are not capitalizing on the financial expertise necessary to enhance cash flow predictability, reduce debt, and improve operational efficiency.
The Need for Interdepartmental Collaboration
Although the data supports the strategic significance of treasury, institutional hurdles continue to exist. Nearly half of department heads in the transportation and logistics sector indicated that their organizations need to foster greater interdepartmental collaboration, the highest proportion among the industries surveyed.
To implement effective change, a purposeful transformation in how treasury is viewed and positioned within organizations is necessary. One of the initial steps is increasing the visibility of treasury at the executive level. Treasury professionals should not just present data; they should offer insights that influence corporate strategy.
Including treasurers in significant financial discussions can help bridge the gap between operations and financial planning, enhancing business agility and resilience.
Organizations that dismantle silos and integrate treasury into strategic decision-making will achieve a competitive advantage. By acknowledging the value that treasurers offer — not only as financial gatekeepers, but as strategic allies — companies can unlock new efficiencies, bolster liquidity, and prepare themselves for enduring success.
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How Treasury Can Enhance Financial Performance
When companies regard treasury as a strategic function, they gain a competitive edge. With their comprehensive understanding of financial cycles and risk exposure, treasurers are ideally positioned to deliver solutions — provided they are given the authority to do so.
One advantage of increased treasury involvement is superior debt management. The report revealed that 70% of treasurers stated that closer collaboration with other departments would assist in reducing corporate debt. By collaborating more closely with operations, procurement, and corporate strategy teams, treasurers can optimize working capital and identify avenues to lower borrowing costs.
Improved cash conversion cycles (CCCs) are another area where treasury can deliver tangible results. With supply chain disruptions becoming more commonplace, transportation companies must ensure the efficient management of payments and receivables.
According to the report, 66% of treasurers indicated that they perceive faster CCCs as a direct benefit of increased collaboration. This implies that by integrating treasury insights into broader decision-making, companies can decrease the time taken to convert shipments into revenue — a critical advantage in an industry where liquidity limitations can significantly impact profitability.
The takeaway? Forward-thinking businesses include their treasurers in strategic discussions. In contrast, those that continue to view treasury as an afterthought may risk falling behind and missing key opportunities. The future favors companies that extend their vision beyond the balance sheet and regard treasury as an essential component of their strategy.
To learn more, download “The Impact of Misunderstood Treasurers in the Transportation Sector.”
