Executive Summary
A leading supplier of construction materials across Southern Africa turned to TreasuryONE for a bespoke outsource treasury solution. The objective was to provide this JSE listed company with a team of experienced treasury resources at TreasuryONE that step in for daily Cash & Liquidity duties, as well as FX risk management when required.
As a result, the company now has access to a world-class Treasury Management System, as well as a fully integrated best-practice solution that supports treasury in its entirety, fulfilling cash, debt and investment, financial risk, treasury accounting, and more.
Client Profile
- Sector: Industrials
- Headquarters: South Africa
- Headcount: 3 500+
“Partnering with TreasuryONE has been a game-changer for our treasury operations. The bespoke corporate treasury outsourcing solution, coupled with world-class technology and expert support, has empowered us to streamline
our processes, mitigate financial risks, and optimise our cash and liquidity management.” Group Treasurer
Challenges
Acknowledging the requirement for a comprehensive and specialised approach to treasury management, the company decided to entrust TreasuryONE with bolstering its treasury operations.
This has empowered their treasury team to redirect their efforts towards strategic initiatives, freeing them from the time-consuming daily treasury tasks.
Solution
Treasury Management System: The company now has access to a world-class Treasury Management System. This fully integrated solution covers all aspects of treasury management, including cash, foreign exchange and interest rate risk management, debt and investment management, and hedge accounting requirements. TreasuryONE ensured the smooth implementation of the TMS, provided hosting and technical support, and integrated the TMS with the company’s existing ERP system.
Foreign Exchange Risk Management: All foreign exchange exposures from the company are seamlessly integrated into the TMS from the ERP, allowing the treasury team to proactively hedge any emerging exposures in alignment with its hedging policy.
Daily Cash Visibility: The company achieved enhanced visibility into their daily cash positions through ERP integration and robotic process automation. They now accurately monitor and manage their cash requirements across multiple accounts, improving decision-making and reducing the risk of liquidity gaps.
Cash Management: TreasuryONE supports the company in collating its daily cash requirements and facilitates bank integration via the TMS. This streamlines cash management transactions, enabling efficient cash positioning and optimal utilisation of funds.
Investment Management: TreasuryONE helps the company manage counterparty risk associated with their investments, ensuring they make informed investment decisions while minimising risk exposure.
Debt and Interest Rate Risk Management: The company’s debt facilities and loan schedules are maintained by TreasuryONE, ensuring accurate calculation of associated fees and proactive management of interest rate risks.
Bank Fee Analysis: TreasuryONE enabled the company to run automated bank fee reports on a regular basis to identify any deviations from their agreed bank fees, get a clear overview of their bank fees and benchmark rates and identify potential savings.
Results
Streamlined cash and liquidity management processes, leading to improved visibility, enhanced decision-making, and reduced liquidity risks.Accurate cash flow forecasting, enabling proactive planning and optimisation of cash utilisation.Effectively managing debt facilities and interest rate risks results in optimised financing costs and improved financial risk management.Comprehensive foreign exchange hedging and risk management, minimising exposure to currency fluctuations and associated risks.Transparent analysis of bank fees, facilitating cost control and potential savings.