The fast route to centralisation Autoneum s project POWER

Transcription

1 The fast route to centralisation Autoneum s project POWER J. Hahn / Head Treasury Operations, October 2014

2 Agenda 1. Autoneum at a glance 2. Project POWER: a centralized gateway Starting point Goals Project DRIVE: standardized business processes with SAP Via SAP & FIDES to the banks (and back) 3. Outlook: the years ahead Outlook: payment-factory roll-out until 2017 Formats SAP Treasury enhancements 4. Lessons learned 5. Q & A

3 Agenda 1. Autoneum at a glance 2. Project POWER: a centralized gateway Starting point Goals Project DRIVE: standardized business processes with SAP Via SAP & FIDES to the banks (and back) 3. Outlook: the years ahead Outlook: payment-factory roll-out until 2017 Formats SAP Treasury enhancements 4. Lessons learned 5. Q & A

4 1. Autoneum at a glance Product lines Broad range of technologies Innovative materials and processes Customized systems and components Cost effective and lightweight solutions Total vehicle optimization Simulation tools and measurement systems Engine Bay Underbody Interior Floor Body Treatment 4

5 1. Autoneum at a glance Key Facts & Figures Stock listed company (SIX Swiss Exchange) About 45 locations worldwide Net Sales 2013: million CHF Represented in more than 20 countries Operating result before interest and taxes* (EBIT) Some employees * before one-time expenses 5

6 1. Autoneum at a glance Well-diversified global customer base BG North America 42%* * Share in net sales

7 Agenda 1. Autoneum at a glance 2. Project POWER: a centralized gateway Starting point Goals Project DRIVE: standardized business processes with SAP Via SAP & FIDES to the banks (and back) 3. Outlook: the years ahead Outlook: payment-factory roll-out until 2017 Formats SAP Treasury enhancements 4. Lessons learned 5. Q & A

8 2. Project POWER: a centralized gateway Starting point Status Quo 2012: Treasury organization Centralized Treasury Operations 2 FTEs (globally); based in HQ in Winterthur Cash management landscape: Larger positions of local based cash Large number of bank accounts globally (> 100) with broad variety of banks (> 45) System / IT landscape: Out-dated Treasury Management System (TMS) Independent / outdated ERP landscape No standardization in transmission of payment files & bank statements 8

9 2. Project POWER: a centralized gateway Starting point Status Quo 2012 execution of payments & posting of bank statement items: Preparation & release of payment runs Local No transparancy for HQ Connection to banks for transmission No standard approach Heterogeneous systems E.g. Mammut, e-banking portals, local solutions MT940 for «Electronic Bank Statement» functionality in ERP None Manual booking of bank statement items; paper based 9

10 2. Project POWER: a centralized gateway Starting point Approach before start of project POWER 10

11 2. Project POWER: a centralized gateway Goals Goals: Full daily overview over cash & liquidity MT940 for Treasury for (major) bank accounts Parallel for Accounts Receivable use locally Better transparency of cash flows globally ( where possible) «review» functionality for payments executed Cost savings Choosing «the right» banks Reduction of number of bank accounts Aligned approach to connect legal units to their banks One interface Standardized process «Payment Factory» as target What is a Payment Factory? 11

12 2. Project POWER: a centralized gateway Goals Definition payment factory: Centralization of payment flows for Treasury & AP payments Process: Transmission from legal unit ERP system to central connectivity solution Centralized execution of file transfers in a cost & process optimized approach Transfer via one central bank connection / interface to appropriate bank relation & bank account 12

13 2. Project POWER: a centralized gateway Project DRIVE: standardized business processes with SAP July 2012: Board decision for global project («DRIVE») of process re-engineering by using SAP as instrument (global roll-out of SAP FI, CO, SD, MM, etc) Agenda: 2 3 Roll-Outs / year, starting with CH Legal units time frame until 2017 for Project DRIVE Group Treasury Project POWER: TMS evaluation 2nd half of 2012, SAP TRM selected as new TMS in 11/2012 In-House Cash licensed for future use Benefit of integration into DRIVE landscape Consulting partner for SAP Treasury: EPROX Consulting, Switzerland Key changes / requirements short term: Centralized transmission of payment runs & bank statements Single gateway to the banks & local benefits of SAP TRM use 13

14 2. Project POWER: a centralized gateway Via SAP & FIDES to the banks (and back) Status Quo: FIDES already in place Daily collection of MT940 & MT942 Potential approach for payments: SWIFT connectivity for non-ch / non-eur zone Go-Lives Potentially EBICS where available avoid SWIFT Profiting from choosing «the right format»: ISO / XML Evaluation: Comparison of a few service providers (e.g. «classical» SWIFT Service Bureaus) Alternative: would SWIFT solution «Alliance Light» fit to our needs? 14

15 2. Project POWER: a centralized gateway Via SAP & FIDES to the banks (and back) Alliance Light: Offers easy and cloud based linkage to the SWIFT network No complex and expensive IT investments required Allows independence from 3rd party providers Assessment Autoneum: approach ideal if only a few banks to be connected utilization of single standard file format possible (e.g. only MT101) inhouse capacity to maintain format variations if necessary limited number of countries approached for payments 15

16 2. Project POWER: a centralized gateway Via SAP & FIDES to the banks (and back) Autoneum case: Broad(er) variety of banks Complete bank landscape not yet known at project start Global roll-out: includes banks in «complex» countries (Potential) variety of formats Limited SAP business analyst capacity in-house Doubts if Alliance Light «plug-in» would work for us Unknown consulting costs for implementation Decision to go for «hybrid Service Bureau» approach provided by FIDES 16

17 2. Project POWER: a centralized gateway Via SAP & FIDES to the banks (and back) New approach with using SAP / BCM & FIDES Middleware 17

18 2. Project POWER: a centralized gateway Via SAP & FIDES to the banks (and back) Payment factory roll-out until 10/2014: 2013 (CH): Pilot entities: 3 x Headquarter / management entities 1 x operational entity 2014: USA CA Connectivity via FIDES: CH banks (3) via EBICS USA & CA: Autoneum BIC 18

19 Agenda 1. Autoneum at a glance 2. Project POWER: a centralized gateway Starting point Goals Project DRIVE: standardized business processes with SAP Via SAP & FIDES to the banks (and back) 3. Outlook: the years ahead Outlook: payment-factory roll-out until 2017 Formats SAP Treasury enhancements 4. Lessons learned 5. Q & A

20 3. Outlook: the years ahead Payment factory roll-out until 2017 Payment factory roll-out until 2017: 2015: EUR: France, Spain Portugal Others: Poland 2016: EUR: Belgium, Germany Others: UK, Brasil, Argentina, China, Czech Republic Bank strategy: one bank for EUR countries & SEPA payments (potentially) same bank for Poland & Czech Republic Brazil, Argentina & China: TBD 20

21 3. Outlook: the years ahead Formats Bank Statements: Move from MT940 / MT942 to CAMT.053 / CAMT.052 Currently not an option due to missing bank readiness Payments: Evaluate change to CGI (Common Global Implementation) Depending on acceptance by banks ACK/NAKs (pain.002): Currently received from FIDES by Target to implement into SAP BCM Timeline for implementation of ACK/NAKs: Q4/2014 (depends on FIDES) 21

22 3. Outlook: the years ahead SAP Treasury enhancements Automated confirmation of FX Deals with the banks via MT300 (SAP TRM / New Correspondence Framework) Treasury «Cockpit» for easier navigation across the Treasury Transactions in SAP EMIR & FinfraG compliance (Dodd-Frank TBD) Graphical analysis of data & improved reports: SAP LUMIRA Timeline for implementing further Enhancements: Q4/2014 Q3/

23 Agenda 1. Autoneum at a glance 2. Project POWER: a centralized gateway Starting point Goals Project DRIVE: standardized business processes with SAP Via SAP & FIDES to the banks (and back) 3. Outlook: the years ahead Outlook: payment-factory roll-out until 2017 Formats SAP Treasury enhancements 4. Lessons learned 5. Q & A

24 4. Lessons learned Go-Live CH Legal Units 2013 (bank-connectivity) Manage external dependencies FIDES (e.g. testing windows, converter settings) Banks - format definitions Knowledge of FI consultants in regards to Treasury needs Manage internal dependencies Accounting team (e.g. creation of test files) Manage setup of several developement and testing mandates & impact on bank connectivity in SAP (e.g. middleware configuration) Correct and uniform Masterdata is key for successful payment execution Thorough training of ALL people involved well in advance (IT, Accounting, etc) clear definition of processes (Treasury as «black-box» for other teams) 24

25 4. Lessons learned Go-Live preparation USA & CA 2014 (formats) Sufficient time calculated for preparation / planning / testphases US/CA project involved 2 timezones and 4 different parties (bank, FIDES, Autoneum team and SAP consultants) multiplication of time needed due to complexity Bank internal project guidelines lead to additional time needs (e.g. several UAT cycles, testing freeze, cheque Go-Live schedules) Definition of ACH formats (CTX, CCD, PPD, etc.) MT940 used for statements BAI2 can be avoided! Don t rely on local knowledge: ACH requirements («don t know, we always paid by cheque») Hypercare phase must not be underestimated Complexity to get reduction of cheques agreed on vs. timing to get reduction of cheque payments implemented 25

26 5. Q & A Contact details: Janko Hahn Head Treasury Operations Autoneum Management AG T Janko.Hahn@Autoneum.com 26