Streamlining the treasury function - Deloitte

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Streamlining the treasury function

How a major conglomerate transformed its treasury operations to meet the challenges of its global operations

The challenge: Without the proper technology support, our client's treasury function was struggling to effectively

redeploy cash where it was needed most.

The approach: Our implementation methodology and accelerators helped us rapidly set up the SAP Treasury platform

that enabled the broader transformation effort.

The outcome: While this project is still ongoing, our client now has real-time, central visibility into cash balances and

transactions across hundreds of legal entities and thousands of bank accounts globally.

The treasury function is essential to maintain liquidity and manage financial risk, especially in large international organizations that require visibility into, and control over, global cash and foreign currency exposure. That's why some of the world's most progressive companies establish a link between treasury and corporate strategy. They also work to ensure that their treasury functions have the tools and technology they need to address liquidity and financial risk across their markets.

Challenge

A multinational conglomerate's global treasury function was operating inefficiently--far below the level required to manage liquidity and risk across the company's vast operations. Much of this was due to a decentralized operating model and the absence of a core treasury technology infrastructure.

Without the proper technology support, the treasury function was struggling to effectively redeploy cash where it was needed most. Likewise, it was finding it

difficult to reduce the cost of external financing. Finally, the treasury function lacked the kind of leading practices that could allow it to manage cash, banking, financial risk, and capital market operations at a world-class level.

What the company needed was a broad and sophisticated treasury technology solution that could streamline, automate, and standardize its treasury operations globally. Furthermore, it needed a set of methodologies and business processes that could equip the treasury function to manage risk and support the organization's growth.

Streamlining the treasury function

Approach

The client engaged Deloitte to work with it in an ambitious transformation initiative based on our strong track record with other large-scale treasury transformations and our technical experience with SAP Treasury. We pulled together a diverse team of professionals with deep industry knowledge, understanding of the treasury function, and technology capabilities. That combination gave us the ability to bring end-to-end solutions, devising a strategy for an effective treasury function that can support the growth of the business--and then actually implementing that vision.

Applying lessons learned from past engagements, we helped the client design a future-state treasury function with a focus on scalable and dynamic solutions.

Our implementation methodology and accelerators helped us rapidly set up the SAP Treasury platform that enabled the broader transformation effort.

Outcome

While this project is still ongoing, the team has already enabled real-time, central visibility into cash balances and transactions across hundreds of legal entities and thousands of bank accounts globally.

Cash efficiency has increased because the treasury function can now effectively redeploy internally available cash, thereby reducing external financing costs. And integrating transaction and centralized payments processing using standard workflows helped enforce the segregation of duties and controls.

Treasury has also benefited from improved monitoring capabilities, and it is better able to manage companywide exposure to foreign exchange, interest rates, and financial counterparties.

As our work with this client demonstrates, complex treasury initiatives require a diverse team that can help address a broad range of challenges, including liquidity, financial risk management, and technology strategies and functionality, plus the broader business, finance, accounting, and tax issues that affect the treasury function.

Trying to modernize your treasury function? Let's talk.

Contacts

Kesavan Thuppil Managing director Deloitte & Touche LLP kthuuppil@

Chi Lee Senior manager Deloitte & Touche LLP chiylee@

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