Reducing processing costs by 15% and improving the working capital management by one million dollar.
BRIEF
A global building material company required support to improve visibility and control of its wire transfers that were done in different subsidiaries that company had in the Latin America region. Around one hundred fifty (150) transactions were processed on monthly basis. The requirement for managing cash more efficiently was the main driver to the customer request as it had borrowing under its costly working capital credit line.
SOLUTION
The proposed solution was to standardize systems and processes as the customer had instances of the same ERP in each subsidiary in the region. Also, the authorization process of the wire transfers was centralized in the client’s regional office (Brazil) to allow the regional Treasurer the visibility needed to manage the cash properly.
Results & Recommendations
After the implementation of the proposed solution, the client was able to reduce the processing cost of the transactions by 15% and improve the working capital management by one million dollar as the regional treasurer had full visibility of all transactions, which allowed him to mange the usage of working capital more efficiently.
After we helped the management to reach their goal with this project, we suggested the client to automate the end-to-end process with a bank (best practice) to reduce the banking costs.