Global Cash and Liquidity Management

Transcription

1 Global Cash and Liquidity Management Barcelona, 12th of July 2016 B R A Z I L C H I N A C O L O M B I A M E X I C O P O R T U G A L S P A I N U S A

2 Global Cash and Liquidity Management Cosentino Background and Objectives Solution and Partner Selection Project Approach and Scope Summary

3 Cosentino Company Highlights Evolution Main Figures Treasury Policies Treasury Challenges: Become a Business Value Unit

4 Cosentino

5 Cosentino Evolution Cosentino started Silestone Family product launch USA operations Cosentino Brazil 5 continents Cosentino presence TMS Go-live SAP ERP Go-live Dekton Family product launch 3 year plan: Prod. capacity x3 Sales forecast ,000 M EUR SAP Treasury Go-live (TMS substitution)

6 Cosentino Main Figures 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. >200K bank operations per year 32 banks 200 accounts Cosentino Treasury 80 Countries > 3,400 employees, less than the half work in Spain. More than 100 legal entities, All managed in SAP ERP. 11 people 33 Companies 200,000 bank operations per year. > 300 financial instruments contracts open. > 300 Financial contracts 6

7 Cosentino 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. 7

8 Cosentino 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. 8

9 Solution and Partner Selection Evaluated Solutions Partner Selection: Stratesys Stratesys Add-on for SAP Treasury. Pyxis

10 Solution and Partner Selection SAP Treasury 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 Flexibility, but BAM Project and license cost User Experience Predefined reports TMS 10

11 Solution and Partner Selection SAP Treasury 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 Flexibility, but BAM Project and license cost User Experience Predefined reports TMS Integrated Business Analytics solution Vendor strength and number of partners New S/4HANA version improvements 11

12 Solution and Partner Selection 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 12

13 Solution and Partner Selection Stratesys Add-on for SAP Treasury - Pyxis SAP Treasury & Risk Management Management of Global Financial Risk Optimize Debt & Investment Strategies Risk Analyzers Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer Position Management Coverage Management Transaction Management Money Market Debt Management Foreign Exchange Securities Derivatives Commodities SAP Cash and Liquidity Management Liquidity Planner Treasury Budget with SAP BPC Cash & Liquidity Management Payments Optimize & Bank Communication Cash Management SAP In-House Cash SAP Bank Communication Management Processing of Bank Files Treasury & Accounting Reconciliation Bank fees control & relationships Cash Pooling 13

14 Background and Objectives Initial Situation Business Challenges Project Objectives

15 Background and Objectives Initial Situation Treasury reports and analysis depends on data introduced in TMS. High manual workload Several systems interfaces - issues, errors, delays, etc. - Continuous system reconciliation tasks. Payment and collection processes manually integrated 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. Error, delays, Interface International growing scenario 80 countries 32 Banks High manual workload 200k bank ops/year Operational Risk Limited Cash Visibility No international or national cash pooling. Excel dependency 15

16 Background and Objectives Initial Situation User interaction Automatic process Manual process Cosentino Group HQ BANK BANK SAP ERP Bank Statements Payments Collections orders Non-SAP TMS BS Bank Bank Comm. Comm. Platforms Platforms Bank Statements BANK BANK 11 users > 80 countries > 100 legal entities Bank Statements Payments Collections files e-banking e-banking portal e-banking portal e-banking portal solution Bank Statements Payments Collections BANK > 32 banks > 80 countries 16

17 Background and Objectives 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. 17

18 Background and Objectives Project Objectives Cash & Liquidity Management 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 (3 rd 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. 18

19 Project Approach and Scope Treasury Processes Scope Companies and Countries Scope Target System Map Companies and Countries Scope Phased Approach of the Project

20 Project Approach and Scope Treasury Processes Scope Project scope Out of scope Cash And Liquidity Management Payment & Collection Operations Bank Statement Processing and Monitoring Cash Position and Liquidity Forecast Bank Control & Relationship Management Payments/Collections Bank Communication Bank Account Management Payment Approval Workflow and Signatures In-House Banking Netting Payment/Collection Factory Bank Connectivity (EDITRAN, SWIFT ) Treasury Budget 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 Financial Instruments Management Risk Management Front Office Trading Middle Office Counterparty and Market Risk Analysis Back Office Settlement, Fixing Accounting Exposure Management Hedge Accounting 20

21 Project Approach and Scope Target System Map User interaction Automatic process Manual process Cosentino Group HQ SAP BI/BPC Reduced Excel dependency BANK BANK Treasury Budget SAP ERP BANK TR-CM Cash & Liquidity Management TR-TRM Treasury & Risk Management Bank Statements Payments Collections Bank Connectivity platforms Bank Statements Payments Collections BANK BANK 11 users > 80 countries > 100 legal entities > 32 banks > 80 countries 21

22 Project Approach and Scope Companies and Countries Scope Norway (2) Finland (4) UK (2) Ireland (2) Poland (1) Italy (3) Puerto Rico (5) Israel (4) UAE (1) Singapore (3) Country (Roll-out order) 22

23 Project Approach and Scope Phased Approach of the Project Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash & Liquidity Management Global CM Model Definition & Spain companies Implementation 1 CM Global definition CM Spain Implementation Go-live CM International Subsidiaries Roll-out (except US & BR) 2 International Subsidiaries Roll-out (<> US, BR) Go-live Financial Instrument Management Global TRM Model Definition & Implementation 3 TRM Global definition TRM Implementation Go-live CM USA & Brazil Roll-out 4 CM USA & Brazil Roll-out Go-live Treasury Budget Global Model Definition & Implementation 5 BPC Global definition Treasury Budget Implementation Go-live 23

24 Summary Achievements and Next Steps Key Benefits Lessons Learned

25 Summary Achievements and Next Steps Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash & Liquidity Management Global CM Model Definition & Spain companies Implementation 1 CM Global definition CM Spain Implementation Go-live CM International Subsidiaries Roll-out (except US & BR) 2 International Subsidiaries Roll-out (<> US, BR) Go-live Financial Instrument Management Global TRM Model Definition & Implementation 3 TRM Global definition TRM Implementation Go-live CM USA & Brazil Roll-out 4 CM USA & Brazil Roll-out Go-live Treasury Budget Global Model Definition & Implementation 5 BPC Global definition Treasury Budget Implementation Go-live 25

26 Summary Achievements and Next Steps Norway (2) Ireland (2) Poland (1) Portugal (2) UAE (1) Today Treasury Visibility on SAP 26

27 Summary Achievements and Next Steps Norway (2) Norway (2) Finland (4) Finland (4) UK (2) Ireland (2) UK (2) Ireland (2) Ireland (2) Poland (1) Poland (1) Italy Italy (3) (3) Puerto Rico (5) Portugal (2) Israel (4) Israel (4) UAE (1) UAE (1) Singapore (3) Singapore (3) Today Treasury Visibility on SAP 2017 Treasury Visibility on SAP 27

28 Summary Key Benefits Treasury Accounting Information Technologies Integration of Treasury Processes with all Business Processes 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 nonvalue added tasks elimination. Better bank control. Audit trail. Compliance. 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. 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. 28

29 Summary Lessons Learned 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. 29

30 Summary Lessons Learned 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. 30

31 31 Q & A Thank You

32 Solution and Partner Selection About Stratesys SAP Cloud for Customer Digital Marketing HANA Cloud User Experience 38+ M 100%+ revenue growth in the last 5 years active clients in all industries countries with local presence (offices and centers of expertise) SAP AM & BPO Services Treasury Simple Finance International SAP Roll Out SAP Predictive Analytics Business Objects Analytics SAP implementation projects Skilled professionals 32

33 Copyright Stratesys Technology Solutions. All rights reserved. No part of this document may be reproduced or transmitted by any means, for any purpose without the express permission of Stratesys. All products are trademarks or registered trademarks of their respective companies.