Case Study: Discover and Benefit from SAP Treasury Solutions on SAP HANA

Transcription

1 Case Study: Discover and Benefit from SAP Treasury Solutions on SAP HANA John Arthur, Goldcorp & Jochen Stiebe, Serrala

2 Goldcorp: Ready for the future 2 1 Introduction 2 Analysis and Objectives Deployment Options Treasury Workstation Project Summary Q&A

3 Goldcorp Overview 3 Goldcorp Inc. (NYSE:GG) is Canadian gold mining company headquartered in Vancouver with operations throughout the Americas Market Guidance Produce 2.5M ounces of gold All-in sustaining cost (AISC) of $800/oz (+/- 5%) Zinc/lead/silver/copper by-products KEY Metrics ~US$11B market cap Rated BBB+/Baa3 US$2.5B of debt outstanding; US$3B revolving credit facility Workforce of 15,000 people TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

4 Goldcorp s Portfolio and Strategy 4 TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

5 Goldcorp s 5-year Target to Maximize Returns ~ 2017 PRODUCTION INCREASING MARGINS AND RETURNS RESERVES AISC TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

6 Goldcorp Innovation Vision 6 TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

7 Goldcorp s Mining Innovation Program 7 TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

8 Machine Learning and Analytics at Goldcorp 8 TOGETHER, TOGETHER, CREATING CREATING SUSTAINABLE SUSTAINABLE VALUE VALUE

9 9 VIDEO TOGETHE

10 About Serrala 30+ years of experience Global reach 16 offices in Europe, North America and Asia-Pacific 2,500+ customers Serviced by 550+ dedicated employees

11 Serrala Optmizes the Universe of Payments From Order-to-Cash, Procure-to-Pay, to Cash Visibility and Beyond Order to Cash Credit Management Cash Application Collections & Disputes Risk & Compliance Payment Management Payment Processing Global Payment Factory Connectivity & Formats Bank Account Management Payment Compliance Procure to Pay Supplier Evaluation Supplier Management Accounts Payable Payments Universe of Payments Data and Document Management Archive Service Data Volume Management Legacy Decommissioning Privacy and Compliance Audit Readiness Cash Visibility Cash Management Liquidity Planning Treasury & Risk In-house Banking Bank Relations 6/26/

12 We offer a unique set of solutions to our customers $ The solution leader for the universe of inbound & outbound payments and cash visibility Flexibility in delivery models, from SAP on-premise to hybrid & full cloud! Addressing the core market trends of compliance, automation, efficiency, security & transparency Ability to serve corporate customers across all industries and banks

13 Goldcorp: Ready for the future 13 1 Introduction 2 Analysis and Objectives Deployment Options Treasury Workstation Project Summary Q&A Discovering and Benefiting from HANA

14 Goldcorp Analysis - As-Was Treasury IT Infrastructure SAP Sub 1 SAP Sub n SAP ECC 6.07 SAP Financial Accounting (SAP FI) AP AR CO MM SD FI HR EBS FX Rates Manual payment file upload Manual statement upload Thomson Reuters Banks BPC MS 10.0 GLSU Bank Statements Manual Process Existing Reval interface Manual Extractor General Ledger Spreadsheet Upload Cash Management Liquidity Planning TMS Reval Treasury Trade & Valuation Bank Account Management Manual Online Banking Payments CM Planning only Manual Offline FX Trades FIDES

15 Goldcorp Analysis - Treasury Processes 15 Treasury / Accounting Process to be Replaced Maintain spreadsheet reports of all instruments Documents exchanged via / Sharepoint Manual G/L Postings of all Treasury instruments Manual Excel reconciliations of trial balances to Treasury reports Treasury Centers Vancouver (Corporate) Mexico (SSC) Switzerland / Barbados (Trading & Marketing)

16 Goldcorp Analysis - Treasury Scope 16 External Payments Migrate existing payments to SAP for system initiated transactions currently in Reval Utilize established bank relationships / connections as master bank connections Cash Management Central cash position worksheet for daily cash positioning of all companies in scope Cash clearing process on the relevant bank accounts Short-term liquidity forecast based on information based on available information in the existing SAP environment of Goldcorp s Integra system (FI- AR/AP, MM, SD, TRM) Integration of information from TMS for liquidity forecast Bank Account Management Master data management Workflow processes to maintain data (e.g. account opening, account validation)

17 Goldcorp Analysis Treasury Scope 17 Treasury and Risk Management Financial instruments in scope: FX Spot / Forwards Intercompany loans Bank Loans and Facilities Issued Bonds Fixed-Term Deposits Letters of Credit (Reclamation) Integrate accounting postings with Integra Generate month-end and realized valuations for instruments Integrate TRM with market data provider Integrate trading platform with TRM Hedge Accounting (additional scope)

18 Goldcorp Treasury Project Objectives 18 Replace Reval with SAP S/4 HANA Enhance the treasury transaction process, including payment operations, workflows, signatures, monitoring & status tracking (eliminate manual data transmission/entry) Reduce the number of supported IT platforms to reduce support costs Simplify the existing system architecture to manage all instruments and transactions in one system Improve cash flow and transparency of working capital across the company Optimize bank (bank file) connectivity for the execution of payments Standardize bank account management (BAM)

19 Goldcorp Treasury Project Objectives 19 Enhance bank statement reporting incl. bank balances and account reconciliation Monitor consolidated cash balances on a daily basis Timely & comprehensive view of cash including intercompany transfers/loans/facilities Optimize payment consolidation, processes and reporting through a shared service centre Improve short-term liquidity planning (accuracy and timeliness) Enhance treasury trade management for FX spot & forward trades Streamline treasury reporting & standing instructions Real-time monitoring, control & reporting of debt and investments

20 Goldcorp: Ready for the future 20 1 Introduction 2 Analysis and Objectives Deployment Options Treasury Workstation Project Summary Q&A

21 Deployment Options - DEFINING THE BEST SOLUTION 21 Classic Approach Side-Car Approach Integrated Approach Client Clien t Fiori Client Fiori Client SAP ERP ECC 6.0 INTEGRA CO CM FI SD BCM MM LP TRM SAP ERP FI CO BCM SD MM CM on HANA S/4 HANA Finance TRM SAP Business Suite on HANA CO SD MM CM on HANA SAP Accounting BCM TRM Any DB Any DB SAP HANA DB SAP HANA DB SAP ERP ECC 6.0 on INTEGRA Treasury workstation approach on S/4 HANA Complete HANA integration of SAP Business Suite ECC on INTEGRA

22 Deployment Options SAP S/4HANA SIDE APPROACH 22 The Side-Car approach is the most mature / stable option available to allow Goldcorp to utilize SAP S/4HANA. All future SAP R&D and innovation will focus on SAP S/4HANA Low risk implementation that allows Goldcorp to understand the benefits and limitations of SAP S/4HANA before moving off of SAP ECC Benefit from the less complex SAP Fiori user interface for cash and bank account management Use the best of both current (ECC + SAP S/4HANA) worlds

23 Goldcorp: Ready for the future 23 1 Introduction 2 Analysis and Objectives Deployment Options & Project Timeline Treasury Workstation Project Summary Q&A

24 Treasury Workstation - Target Operating Model SAP ECC 6.07 BPC 10.1 Classic on HANA DB SAP Integra AP AR CO MM SD FI HR EBS Bank Communication Management FX Rates AP Payments only Integra statements FIDES Thomson Reuters EBS Mineman Sales SAP S/4 HANA (1610) Cash Management on HANA Non-Integra statements Interest Rates / Credit Spreads Thomson Reuters Banks Bank Account Management Treasury & Risk Management Trades FX ALL SAP S/4HANA OneExposure New / Updated FX Exposures FX Exposures (BPC)

25 Treasury Workstation - Side-car Information Flow 25 SAP-relevant bank statements uploaded into Integra; non-sap bank statements uploaded only to CMoH Accounts in SAP Integra show not just aggregated bookings, but single line items from the bank statements TRM postings added as line times into SAP Integra Cash flow information is added from all company codes to SAP CMoH Cash Flow items from non-sap company codes uploaded in CMoH FX Exposures uploaded in TRM via BAPI Invoices and purchase orders from Integra uploaded into CMoH for short-term forecasting Sales data uploaded via spreadsheet into CMoH Postings only TRM FX Exposures Upload ECC All Company Codes IDOCs HANA Only CM / TRM relevant company codes CMoH Non-SAP Cash flow Items EBS

26 Treasury Workstation TRM Capabilities 26 Transaction Manager Hedge Accounting Workflow for treasury deals and Business Partner Automatic import of FX trades Automatic import of interest rates (directly into HANA) Import FX Exposures

27 Treasury Workstation - Cash Management on SAP S/4HANA 27 Bank Account Management Workflow for BAM Short-term forecast Import of non-sap CM-relevant information (Mineman, memo records) Non-SAP Bank Statements

28 28 DEMO

29 Goldcorp: Ready for the future 29 1 Introduction 2 Analysis and Objectives Deployment Options Treasury Workstation Project Summary Q&A

30 Current State 30 BAM and TRM are live with 3 month ends (including 1 year end) complete Continuing to deal with fixes and enhancements Transition to Sustainment in progress CM is technically live but requires work with Treasury team to be fully functional Identified future project phases which will require business cases (BCM and SAP Commodity Management) Other than additional CM functionality, delivered scope identified in initiation phase BCM was deferred early in the project and hedge accounting was added Project came in over budget due to the need for additional resources to deal with unexpected complexities (Fiori, S/4 components, configuration dependencies)

31 Project Phases / Timelines 31 Initiation approx. 4 months including inception, initial requirements, RFP, business case, approvals, contracting, and onboarding Plan and Design approx. 4 months excluding time off over winter break Build and Implement approx. 6 months in phases (BAM, TRM, and CM) Final Preparation and Go-Live approx. 2 months in phases (BAM, TRM, and CM) Hypercare and transition to support in progress Build & Implement Final Prep & Go-Live Initiation Plan & Design

32 Project Resourcing 32 Initiation Blueprint Build Go-Live Hypercare SAP Resources Implementation Partner PT FT FT FT PT Basis FT FT PT Security PT PT PT PT FI / Treasury Consultants PT FT FT FT Developer PT FT PT Business Resources Treasury PT FT FT FT FT Accounting PT PT FT PT Project Manager Client Side PT FT FT FT PT Implementation Partner PT PT PT PT PT

33 Lessons Learned 33 Make sure to fully understand the pros, cons, limitations and implications of potential system architecture (classic, sidecar or integrated) The S/4 versions have significant differences so be prepared for redesign / alternative solutions Understand that some processes will have to change to align to the standard functionality provided by SAP Use the project as an opportunity to implement more efficient / standard treasury processes Discovering and Benefiting from HANA

34 Lessons Learned 34 Make sure the accounting team is involved early in the project and understand that they will be heavily involved in the design (including processes), user acceptance testing, and master record / data conversion (for reconciliations) Work closely with your implementation partner to understand resource requirements and pay particular attention to your resource plan (both numbers and timing) Plan to run parallel (if possible) with existing system for a couple of months Discovering and Benefiting from HANA

35 QUESTIONS?

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