Outsourcing of Cash Management for a Corporate Client
Client:
An international corporation operating in the manufacturing industry.
Challenge:
Our client, a global corporation, decided to outsource its treasury management to enhance liquidity management efficiency and minimize operational risks. The key challenge was ensuring seamless management of daily financial operations, including the preparation and execution of payments while guaranteeing sufficient funds in multiple bank accounts across different currencies.
Our Solution:
As part of this project, we assumed full responsibility for the client’s treasury process, including the preparation and management of payments in SAP. Our key responsibilities included:
Preparation of payment proposal reports: Our team regularly generated payment proposal reports in SAP, covering all planned client payments. Each report underwent a thorough review to ensure accuracy and sufficient funds availability in the appropriate bank accounts.
Verification and approval of payment run reports: After preparing the payment proposals, we conducted a detailed analysis to ensure compliance with the client’s financial policies and confirm the payments could be executed safely. We then approved the payment run reports, ensuring timely and accurate transaction execution.
Managing funds across multiple currency accounts: Our team ensured that sufficient funds were available in the required currencies by actively monitoring bank account balances, performing necessary internal transfers, and planning foreign exchange transactions to prevent delays and reduce currency conversion costs.
Processing manual payments: In cases requiring urgent or exceptional transactions, we handled manual payments, ensuring their accuracy and compliance with the client’s financial policies.
Results:
Efficient liquidity management, ensuring the timeliness and accuracy of all payments.
Minimized operational risks through full control of the treasury process.
Reduced operational costs related to payment management and optimized financial workflows.
Improved currency management, leading to better forecasting and cash flow planning.
Conclusion:
Outsourcing the treasury process to our team enabled the client to focus on strategic business activities, with the assurance that daily financial operations were managed with the highest level of precision and compliance with best practices. Our collaboration provided tangible benefits, including increased efficiency, financial security, workforce availability and redundancy in critical processes, and cost optimization.
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