cash management optimization - sapevent.ch · sap environment and implementation strategy ......

Cash management optimization Anastasia Medvedeva/Swissgenia

Vincent Manti/Mediterranean Shipping Company

June 18th , 2015

© 2015 SAP (Schweiz) AG. All rights reserved. 2

Agenda

Business requirements and key points

SAP environment

Cash pooling and Payment factory

Expectations and results


Privately owned shipping line, founded in 1970, nowadays the world’s second largest container shipping line.

Privately owned and managed by Chairman Captain Gianluigi Aponte, Diego Aponte as CEO/Alexa Aponte as VP

Finance. We offer global container services on a network of 200 trade routes, taking in 340 container ports.

MSC – a passion for Shipping

479 offices

45000 staff

162 countries

340 container

ports

440 container vessels


No visibility, delays, no trusty forecast

Lack control, no insight into process

The existent cash management process was…

Head Quarter Central bank

accounts

time

Incoming

payments

175

50

Outgoing

payments

When?

How much?

Why?

Who?

To whom?

How?

Agent

AR

Incoming

payments

150

200

AP

Outgoing payments

Cash

balance

55

20

Outgoing

payments


Cash pooling

Control over the process

The target cash management process was…

Head Quarter Central bank

accounts

time

Incoming

payments

175

50

Outgoing

payments

Cash pooling

solution to retrieve

cash on central bank

accounts

Agent 1

AR

Incoming

payments

150

100

Outgoing

payments

Cash

balance

80

20

Outgoing

payments

Cash balance

5

Reduce bank fees

Optimize cash

transfers

Increase visibility

Control cash flows

inside group

Agent 2

Agent 3

Incoming

payments

50

200

Outgoing

payments


SAP environment and implementation strategy (2012 -> 2016)

Decentralized accounting systems

Lack of real time information for management

120 countries

Automatization and optimization

SAP implementation Project

Focus on Financial part -> FI-CO

back bone and Payment factory,

Treasury solutions are following

Pilot release FI-CO 2013

Pilot release In-House Cash 2014

Roll-out 92 countries till 2016


MSC key points and business requirements for cash management

Centralizing cash on central bank accounts by putting in place cash pooling structure

Optimize group

cash flow and

reduce bank fees

at the same time

Make worldwide payments to vendors from the central bank accounts

USD

GBP

EUR

Minimize the costs of bank transfers by using “low-value” payment methods

SEPA

BACS

Cross-border

Cash management optimisation strategy


Business process steps

Agency Weekly Cash request

Prepare payment proposal

Check payment postings,

AP/AR clearing

Financial analysis

team

Validate weekly cash request

Check weekly IHC payment

report

Validate and group agencies

proposals

HQ Treasury

Check cash request to

provide money

Prepare payment file for the HQ Central

bank

Adjust cash request in case

if needed

Bank accountant

Interaction with the HQ Central

bank,

Rejection/return


report


Payment factory and Payment release List:

implementation overview

Scope Pilot

3 Europe countries, including UK

Payment release list (Accounts Payables)

In House-Cash (Payment factory in HQ)

EBS for HQ central bank accounts

Payment advice forms to Agency vendors

SEPA (EUR)

Weekly budgets

Cash control&management reporting

Scope after Pilot

5 more Europe countries, USA center

Processing of returns/rejected payments

BACS (GBP)

Compliance management (USD)






AP/AR clearing

Financial analysis

team



report


proposals

HQ Treasury


provide money


bank


if needed

Bank accountant


bank,

Rejection/return


report


SAP Cash and liquidity management

Cash management control report for Payment

factory

• History and archiving

• Cash position report

Weekly budget

Cash and liquidity management functionality

• Excel integration (SAP upload)






AP/AR clearing

Financial analysis

team



report


proposals

HQ Treasury


provide money


bank


if needed

Bank accountant


bank,

Rejection/return


report


Preparing of payment proposal (Agency side)

Preparation of proposal on the Agency side (standard

F110 payment program)

Payment release list for each Agency and for Head

Quarters for final approval and Payment

• Multi-currency

• Multi-Company codes

• Payment Approval schema for Agency and HQ


Payment release list main features

•Create a list / Change list attributes / Change the processor responsible / Close a list

Actions relevant for lists (header area only)

•Dynamic Selections (the system retains your selection criteria) / Assign and unassigned items to a list / Approve and Refuse items for payment / Reset the approval / Send items to Bank

Actions for processing items

•Display the approvers of an item / Display an item log

•Display the document line item / Display the payment document / Display the proposal log / Display the payment run

Actions for monitoring and navigation






AP/AR clearing

Financial analysis

team



report


proposals

HQ Treasury


provide money


bank


if needed

Bank accountant


bank,

Rejection/return


report


In-House Cash (Payment Factory)

IHC EBS: Automatic Clearing

IHC payment Order monitor


Expectation and results: average number of Invoices paid monthly

Achieved results

• Cash pooling solution to retrieve cash on central bank accounts (One Bank, 8 countries)

• Reduce bank fees

• Visibility of planning

• Control cash flows inside group

• Standardization (SEPA (EUR), BACS)

17093 open items

(99%)

23

local

17070

IHC

47118 open items

(91%)

4240

42878 IHC

All 8 Europe countries

Germany (one of the Pilot countries)


Main benefits of the solution provided

Fast implementation

(from 12 weeks)

Easily built upon existent SAP solution

Reduced bank fees

Optimized group cash flow

Autorisation scenario is flexible (approval steps)


Service provider

• Founded in 2012, member of EUROGENIA Group (since april 2015)

• Active in Switzerland (location Lausanne & Nyon)

• SAP Services Partner / Open Text Partner

• Certified Senior consultants

• Focus on Public Sector, SME & Large Enterprise

• Business skills in Finance, Logistic, ECM

• Technical skills in SAP ECC6, S4/HANA, BPC, PSCD

© 2015 SAP (Schweiz) AG. All rights reserved.

Thank you Contact information:

Medvedeva Anastasia

Finance and Treasury principal consultant

[email protected]

Swissgenia SA

[email protected]

+41 21 546 36 01

Avenue Juste-Olivier 11

1006 Lausanne

Suisse

mailto:[email protected]

cash management optimization - sapevent.ch · sap environment and implementation strategy ......

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