Global Cash and Liquidity Management - Stratesys€¦ · approval flows (BPF) Treasury Budget ... Workflow and Signatures In-House Banking ... Global Cash and Liquidity Management

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Barcelona, 12th of July 2016

Global Cash and Liquidity Management

Cosentino

Background and Objectives

Solution and Partner Selection

Project Approach and Scope

Summary

Global Cash and Liquidity Management

Cosentino

Company Highlights

Evolution

Main Figures

Treasury Policies

Treasury Challenges: Become a Business Value Unit

Cosentino Treasury Project - Global Cash and Liquidity Management

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https://cosentino.app.box.com/s/uxu123l4q4po6n73m8kwycu8muyhd9q2

https://cosentino.app.box.com/s/uxu123l4q4po6n73m8kwycu8muyhd9q2


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Evolution

1990 1997 20131979 20112000 2019

3 year plan:Prod. capacity x3Sales forecast 2017 1,000 M EUR

SAP ERP Go-live

SAP Treasury Go-live (TMS substitution)

TMS Go-live

Cosentinostarted

Dekton Family product launch

5 continents Cosentino presence

Cosentino Brazil

USA operations

Silestone Family product launch


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Main Figures

32 banks200

accounts

80Countries

33Companies

> 300 Financial contracts

>200K bank

operations per year

11 people

Cosentino Treasury

Rapid growth and international expansion.

International sales accounts for over 90% of the total.

More than 100 Cosentino Centers in more than 80 countries in all 5 continents.

13 production plants and 13 processing factories spread over several countries.

> 3,400 employees, less than the half work in Spain.

More than 100 legal entities, All managed in SAP ERP.

200,000 bank operations per year.

> 300 financial instruments contracts open.


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Treasury Policies

Spanish family-owned company.

Growth and international expansion require heavy investments to fund. Funding from commercial banks.

FX and financial interest hedging.

Centralized management from Cosentino Headquarters

• Headquarters make strategic and tactic decisions.

• The central financial management controls all branches.

• Some autonomy for major subsidiaries: USA & Brazil.

• Administrative and operational functions are delegated to subsidiaries with headquarters support.

• Trend to centralize treasury functions, to increase efficiency and control.


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Treasury Challenges: Become a Business Value Unit

Increase efficiency of treasury processes.

Immediate reaction to the challenges of a new global and ever changing world, and protection of the company’s assets.

Design strategically the appropriate funding structures for business.

Provide services and banking structures for operations.

Ensure relationships with Banks and other partners.

Costs reduction and control.

Solution and Partner Selection

Evaluated Solutions

Partner Selection: Stratesys

Stratesys Add-on for SAP Treasury. Pyxis


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Evaluated Solutions: SAP ERP ECC 6.06 vs TMS

Integration. System map

One Single Source of Truth

Improve collaboration

Scalability

Cash forecast

Lower Maintenance Cost. Lower TCO

Data Quality

Integrated Business Analytics solution

Vendor strength and number of partners

SA

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Flexibility, but…

BAM

Project and license cost

User Experience

Predefined reports

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Evaluated Solutions: SAP ERP ECC 6.06 vs TMS

New S/4HANA versionimprovements

Integration. System map

One Single Source of Truth

Improve collaboration

Scalability

Cash forecast

Lower Maintenance Cost. Lower TCO

Data Quality

Integrated Business Analytics solution

Vendor strength and number of partners

SA

P T

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sury

Flexibility, but…

BAM

Project and license cost

User Experience

Predefined reports

TM

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Partner Selection: Stratesys

Experience: Number of success references in different industries, countries, etc.

Treasury processes expertise.

SAP Business Analytics and SAP ERP treasury solutions knowledge.

Stratesys add-on for SAP Treasury SAP standard treasury solution evolution: same functionalities found in state of the art TMS, having the advantage of being totally integrated in SAP ERP.

• Increased visibility of cash

• Treasury postings automation: BS Treasury & Accounting reconciliation.

• Improve Bank cost and relationship analysis

• Access to quality information: tailor-made BI reports


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Stratesys Add-on for SAP Treasury - Pyxis

Management of Global Financial Risk

Optimize Debt & Investment Strategies

Payments Optimize & Bank Communication

Cash & Liquidity Management

Position Management

Coverage Management

Transaction Management

Money Market

Foreign Exchange Securities

CommoditiesDerivatives

Debt Management

Risk Analyzers

Credit Risk Analyzer

Market Risk Analyzer

Portfolio Analyzer

Liquidity Planner

Treasury Budget with SAP BPC

SAP Treasury & Risk Management

SAP Cash and Liquidity Management

SAP In-House Cash

SAP Bank Communication Management

Cash Management

Processing of Bank Files

Bank fees control & relationships

Cash Pooling

Treasury & AccountingReconciliation

Background and Objectives

Initial Situation

Business Challenges

Project Objectives


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Initial Situation

International growing scenario

80 countries

32 Banks

200k bank ops/year

Error, delays,

Interface Operational Risk

Limited Cash

Visibility

Excel dependency

High manual

workload

Payment and collection processes manuallyintegrated with banks.

Limited automatic Bank Statements processing.

Excel dependency in critical functions:

• Cash position and liquidity forecast

• Treasury budget and control

• Financial instruments management

SAP Treasury standard functionality not in use.

No international or national cash pooling.

Treasury reports and analysis depends on data introduced in TMS.

• High manual workload

• Several systems interfaces- issues, errors, delays, etc.

- Continuous system reconciliation tasks.


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Initial Situation

Cosentino Group

SAP ERP

Non-SAPTMS

e-bankingportal

e-bankingportal

e-bankingportale-bankingsolution

> 32 banks> 80 countries

Bank Statements

Bank Statements

PaymentsCollections

PaymentsCollections

files11 users

> 80 countries> 100 legal entities

Bank Statements

PaymentsCollections

orders

Bank Comm.

Platforms

HQ

Bank Statements

BS

BANK

BANK

BANK

BANK

BANK

Bank Comm.

Platforms

User interaction

Automatic process

Manual process

http://npcloud.org/wp-content/uploads/2012/02/SAP-Logo.png



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Business Challenges

Achieve Straight-Through Processing.

• Treasury processes automation: bank statements, financial instruments, reporting, etc.

• Increase staff productivity.

• Interface reduction. Single Source of Truth

Cash & liquidity visibility and control across all countries, banks and companies.

• Improving detail and quality of analysis and reports that support decision-making.

• Streamline information gathering.

• Several time zones, bank formats, bank communication platforms, currencies, etc.

Identify and manage risks and exposures.

Improve compliance with internal and external regulations.

Improve bank control: bank fees, interest calculations, value date determination, cash operations distribution across banks.

Intercompany Debt Management Processing.


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Project Objectives


• Cash & Liquidity visibility and efficient treasury operations across all countries, banks and companies.

• Bank connectivity.

• Straight-through processing.

• Bank control.

Financial Instruments Management

• One and complete repository of all Cosentino financial instruments (3rd parties and internal).

• Process Automation.

• Improve Reporting & Analysis.

Treasury Budget

• Elaborate cash flow projections based on P&L, investment and financial KPIs.

• Treasury budget Rolling forecast.

• Treasury budget control and deviations management.

Project Approach and Scope

Treasury Processes Scope

Companies and Countries Scope

Target System Map


Phased Approach of the Project


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Treasury Processes Scope

Financial Instruments Management

Risk Management

Treasury Budget

Project scope

Cash And Liquidity Management

Payments/Collections

Bank Communication

Front Office

Trading

Middle Office

Counterparty and Market Risk Analysis

Back Office

Settlement, Fixing Accounting

ExposureManagement

Hedge Accounting

Budgeting Tool: Planning templates, Formulas, Comm.& approval flows (BPF)

Treasury Budget projection from P&L, Balance Sheet Budget

and KPI

Cash Flow Actual Data and Forecast Data

Collection

Reporting &Analysis

Bank Account Management

Payment & Collection Operations

Bank Statement Processing and

Monitoring

Payment ApprovalWorkflow and

Signatures

In-House BankingNetting

Payment/Collection Factory

Cash Position and Liquidity Forecast

Bank Control & Relationship Management

Bank Connectivity(EDITRAN, SWIFT…)

Out ofscope


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Target System Map

SAP ERP

Bank Statements

Bank Statements

PaymentsCollections

Bank Connectivity

TR-CM Cash & Liquidity Management

TR-TRM Treasury & Risk Management

SAP BI/BPC

Treasury Budget

PaymentsCollections

Reduced Excel dependency

Cosentino Group

11 users> 80 countries

> 100 legal entities

HQ

> 32 banks> 80 countries

BANK

BANK

BANK

BANK

BANK

User interaction

Automatic process

Manual process

Bank Connectivity

platforms




Pro

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UAE (1)

Puerto Rico (5)

UK (2)

Poland (1)Ireland (2)

Finland (4)Norway (2)

Israel (4)

Singapore (3)

Italy (3)

Country (Roll-out order)


Pro

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e2015 2016 2017


Global CM Model Definition &

Spain companies Implementation

CM International Subsidiaries

Roll-out (except US & BR)

Q3

Financial Instrument Management

Global TRM Model Definition &

Implementation

Treasury Budget

Global Model Definition &

Implementation

CM USA & Brazil Roll-out

Q1 Q2 Q2 Q3 Q4Q4 Q1 Q2 Q3 Q4 Q1

Go-live

CM Spain Implementation

CM Global definition

International Subsidiaries Roll-out (<> US, BR)

TRM Global definition

TRMImplementation

Go-live

BPC Global definition

Treasury BudgetImplementation

Go-live

Go-live

CM USA & BrazilRoll-out

Go-live

23

Phased Approach of the Project

1

2

3

4

5

Summary

Achievements and Next Steps

Key Benefits

Lessons Learned


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2015 2016 2017


Global CM Model Definition &

Spain companies Implementation

CM International Subsidiaries

Roll-out (except US & BR)

Q3

Financial Instrument Management

Global TRM Model Definition &

Implementation

Treasury Budget

Global Model Definition &

Implementation

CM USA & Brazil Roll-out

Q1 Q2 Q2 Q3 Q4Q4 Q1 Q2 Q3 Q4 Q1

Go-live

CM Spain Implementation

CM Global definition

International Subsidiaries Roll-out (<> US, BR)

TRM Global definition

TRMImplementation

Go-live

BPC Global definition

Treasury BudgetImplementation

Go-live

Go-live

CM USA & BrazilRoll-out

Go-live

1

2

3

4

5

25



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UAE (1)

Poland (1)

Ireland (2)

Norway (2)

Portugal (2)

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Today Treasury Visibility on SAP


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UAE (1)

Poland (1)

Ireland (2)

Norway (2)

Portugal (2)

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Today Treasury Visibility on SAP

UAE (1)

Puerto Rico (5)

UK (2)



Israel (4)

Singapore (3)

Italy (3)

UAE (1)

Puerto Rico (5)

UK (2)



Israel (4)

Singapore (3)

Italy (3)

2017 Treasury Visibility on SAP


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Key Benefits

Treasury

Real-time global cash position and forecast. Multi-dimensional analysis: Currencies, Countries, Companies, payment method, pools, etc.

Improved cash forecast.

Better and up-to-date information for decision-making.

Increased productivity due to processes automation and non-value added tasks elimination.

Better bank control.

Audit trail. Compliance.

Accounting

Complex accounting processes automation and administrative tasks reduction.

Faster and reliable period-end closing processes.

Easier intercompany operations reconciliation, automatic interest calculation , etc.

Non-value added activities elimination (validation, data reconciliation, inconsistencies correction, etc.).

Management by Exception.

Information Technologies

Simplified system map: Interface reduction.

Faster system and processes integration.

Greater solution scalability and flexibility: New countries, new operations type, new companies, etc.

Lower Total Cost of Ownership (Savings in licenses, training, support, etc.).

Big number of SAP service partners and references.

Integration of Treasury Processes with all Business Processes


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Change management is key to success in the transition to new tools, communication methods, timings, etc.

• Train & involve key people from the beginning of the project.

• Sponsorship of Top Management.

• Cash Management implementation has impact on a lot of business processes to improve cash forecasts. This impact should be anticipated to other departments.

Treasury & Accounting integration. Teamwork rewards.

Do NOT reinvent the wheel:

• Hire an experienced partner with a vision of the complete solution. Save time and ensure project success.

• Use standard functionality.

Phased approach allows the organization to assimilate the solution and the associated procedures change.

Lessons Learned


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Anticipate Bank connectivity.

Centralize complex business functions (Debt contract management, for example) and administrative tasks (Bank Statement processing) to increase productivity and control.

Do not underestimate financial instruments initial data migration.

Accounting automation requires a previous global definition of accounting criteria for all companies of the group.

Understand the budget and align your ambitions: Look for creative ways to keep costs down and have a clear roll-out concept.

Lessons Learned

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Q & A

Thank You


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About Stratesys

revenue growth in the last 5 years

active clients in all industries

countries with local presence (offices and centers of expertise)

SAP implementation projects Skilled professionals

38+ M€ 100%+

200+ 7

800+ 700

Digital Marketing

User ExperienceHANA Cloud

Business Objects Analytics

SAP Predictive Analytics

International SAP Roll Out

Simple Finance

TreasurySAP AM & BPO

Services

SAP Cloudfor Customer


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Documents

Global Cash and Liquidity Management - Stratesys€¦ · approval flows (BPF) Treasury Budget ... Workflow and Signatures In-House Banking ... Global Cash and Liquidity Management