Liquidity planning aligns with the business model

A plant manufacturer plans liquidity differently than a trader—and both differently than an industrial conglomerate. If you don’t tailor your planning to your own business, your plans will be out of touch with reality. Part 3 of our “Treasury Engineers” series.

Two companies can use the same treasury software and still have fundamentally different requirements. The difference lies not in the tool, but in the business model. A liquidity plan that works for one company will fall short for another.

A trading company aggregates large volumes of data and must quickly account for seasonal fluctuations. An industrial company with long payment cycles focuses primarily on planning long-term capital commitments. And in mechanical and plant engineering—the sector where many of our customers operate—project-based business dominates: no detailed day-to-day scheduling, but rather large cash flows that are closely tied to milestones. If a project is delayed, the payment is delayed—and this information must be incorporated into the planning immediately. This requires particularly agile management.

Three Horizons, One Big Picture

As different as the models are, the logic behind the planning levels is transferable. They interlock:

Daily cash management typically covers the next three days. It ensures liquidity and manages cash positions in day-to-day operations. Short-term planning extends from one to twelve weeks and focuses on operating cash flows. Finally, medium-term planning—often spanning three to 24 months—forms the basis for strategic decisions such as investments and financing strategies.

These levels only realize their full value when they work together. Those who manage them separately end up with three isolated views. Those who link them together gain a robust overall picture—from today’s account balance to next year’s financing decisions.

International means: in the original currency

For companies operating internationally, there is an additional layer to consider. When planning is done in local currencies, currency risks become transparent rather than being hidden in converted aggregate line items. A seamless process from forecasting to hedging then improves the quality of forecasts and supports financial stability.

It is precisely this end-to-end approach that the Liquidity Planning Cockpit (LPC) from BDF EXPERTS embodies. It integrates the planning levels with SAP and guides the planning process from forecasting through the original currency to hedging—without any system disconnects, providing a single, shared view for all stakeholders.

For the Treasury Engineer, planning therefore does not mean applying a standard model, but rather reflecting the reality of their own business. This is the prerequisite for turning numbers into sound decisions.

Part 3 of our “Treasury Engineers” series. Based on a guest article by Michael Völkl (Head of Consulting Treasury, BDF EXPERTS) in the trade magazine DerTreasurer, Issue 1/2026.

The text and graphics were created with AI support and editorially reviewed by BDF EXPERTS.