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Inadequate systems. Inefficient management of foreign exchange. Limited visibility into global operations. Does this sound like the capabilities of a worthy strategic partner? While no executive would knowingly pursue a relationship like this, it appears that some of today’s CFOs have inadvertently created such an organization.

Integral to a company’s success, treasurers are working closely with the board to manage risk and boost the bottom line. As they draw the line on debt management and financing strategies, 50% noted that their biggest challenges are repatriating cash and managing foreign exchange (FX) volatility as indicated in a recent study by Deloitte. Despite the desire for digital transformation, many CFOs are ignoring this function. In turn, these challenges continue, unfortunately.

Most corporate treasury groups rely on multiple data sources and solutions to address business needs. Rather than providing practical technology to address treasury challenges, this approach only brings increased operational difficulties and risk. And as we kick off 2016, most CFOs are still focused on centralizing cash and streamlining bank relations, as reported by Global Treasury Intelligence News recently.

A treasury lesson in operational excellence

For one leading company in trade, travel, and tourism that serves customers throughout Europe, this situation was already not acceptable in 2015. The German company wanted to build comprehensive treasury and cash management processes in response to an economy with reduced bank lending and general liquidity challenges. The business needed cash to operate – whether it was procured from the outside or generated and conserved from within. The key to making this happen is tighter integration with operational and enterprise finance, and accounting systems to adapt and evolve treasury strategies as the market continues to change.

By integrating the treasury function into the overall finance organization, the company gained operational efficiency. Cash-generating and cash-depleting operations enabled the business to seize the opportunity of the shifting economy while optimizing straight-through processing with full visibility and real-time analysis. With this information, the treasury function can quickly make strategic decisions that reduce fees and borrowing costs. At the same time, new standards for financial reporting were powered through better controlling capabilities.

Implemented within three months, the SAP customer is using the SAP Payments and Bank Communications rapid-deployment solution to centralize and optimize treasury operations – from in-house banking to corporate-to-bank communications.

1. Streamlined and transparent bank communications. By automating payment workflows, the treasury function can streamline routing and approvals while ensuring compliant operations.

2. Greater visibility into treasury health. Automated bank-to-book reconciliation provides up-to-date intraday cash balances.

3. Decreased reliance on banks and cash transfers. By centralizing the treasury operation, banking relationships and connections are consolidated. This capability drives down banking fees and borrowing costs while reducing unnecessary loan requests. Through controlling in- house cash from one source, the function is reducing its dependence on external funding and improving processes for transferring cash to operations worldwide. Reduced complexity. Optimized payment processes. Compliant operations. Greater transparency into bank communications. These are the hallmarks of a modern treasury function.


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Are you ready? Take a look at how the SAP Payments and Bank Communications rapid-deployment solution can help your treasury organization save your business time and money while staying compliant. Visit us at http://www.sap.com/solution/rapid-deployment/software/payments-bank-communications/index.html



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