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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
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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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
P T
rea
sury
Flexibility, but…
BAM
Project and license cost
User Experience
Predefined reports
TM
S
Cosentino Treasury Project - Global Cash and Liquidity Management
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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
rea
sury
Flexibility, but…
BAM
Project and license cost
User Experience
Predefined reports
TM
S
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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
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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 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 (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
Companies and Countries Scope
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
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Companies and Countries Scope
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)
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Cash & Liquidity Management
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
Cosentino Treasury Project - Global Cash and Liquidity Management
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2015 2016 2017
Cash & Liquidity Management
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
Achievements and Next Steps
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UAE (1)
Poland (1)
Ireland (2)
Norway (2)
Portugal (2)
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Achievements and Next Steps
Today Treasury Visibility on SAP
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UAE (1)
Poland (1)
Ireland (2)
Norway (2)
Portugal (2)
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Achievements and Next Steps
Today Treasury Visibility on SAP
UAE (1)
Puerto Rico (5)
UK (2)
Poland (1)Ireland (2)
Finland (4)Norway (2)
Israel (4)
Singapore (3)
Italy (3)
UAE (1)
Puerto Rico (5)
UK (2)
Poland (1)Ireland (2)
Finland (4)Norway (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
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200+ 7
800+ 700
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Cosentino Treasury Project - Global Cash and Liquidity Management
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