IMPLE, STREAMLINED, SECURE: HOW GEOX REVAMPED ITS … · improving Geox’s treasury processes to...

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SIMPLE, STREAMLINED, SECURE: HOW GEOX REVAMPED ITS TREASURY Toward the end of 2015, we at Geox partnered with UniCredit to restructure our treasury, which had grown in line with our business to comprise a complex network of banking relationships, with dizzying numbers of accounts, platforms and security procedures across multiple countries and currencies. Harnessing new digital technology, the project fully rationalised and streamlined our cash management processes, banking relationships and connectivity to achieve greater efficiency and automation, better decision-making, and first-class security and data integrity. Our company has grown from Italian roots to become truly international – incorporating 40 companies across 28 countries with more than 65 per cent of our turnover generated from sales in over 110 countries worldwide. As we expanded, so did the complexity of our banking and treasury infrastructure: 65 banks and 150 accounts, processing around 100,000 payments each year. Timely and accurate visibility across our global cash balances was, therefore, difficult to achieve – more so any efforts to standardise and automate underlying processes. On top of this, each banking system had different security procedures, meaning user profiles and passwords swelled to unmanageable levels. Consolidating and streamlining the banking relationships, accounts and technologies used to manage our cash became a priority, with the aim of automating processes at Group level where possible, and adopting best practices in accordance with SWIFT to optimise the security and integrity of our processes. Selecting our cash management banking partners was the first, most important, step. At the end of an extensive evaluation process, we chose UniCredit as one of just two preferred partners across several countries and currencies. UniCredit’s international reach amply covered the required geographical footprint, and we knew from previous work with the bank that its cash management, digital solutions, and standard of service were all of the highest quality. Putting the pieces together Energised by this partnership, a pilot project involving 14 companies and four currencies kicked things off in late 2015. Encompassing domestic and cross-border payments, payroll and tax disbursements, both pan-European and domestic collections such as SEPA Direct Debit (SDD) and RIBA, and the retrieval of MT940 bank statements, the project went live in April 2016. The scale and complexity of the project – rationalising across so many countries, systems and stakeholders – presented a huge challenge and called for a careful approach. Implementing the project in phases to minimise risks and test the validity of all the solutions, we were impressed by UniCredit’s ability to balance competing requirements – carefully planning every stage to ensure that there were no loose ends and that all stakeholders remained aligned throughout the project. As part of the implementation, we standardised our accounting software with German company SAP to manage L eading footwear company Geox, in partnership with UniCredit, collaborated in an ambitious treasury project to rationalise cash management processes, bank relationships and connectivity across the Group. Federica Vello, Treasury Manager of Geox, explains the thinking behind the project, the challenges and benefits of full implementation, and the impact of this collaborative effort on the wider Group strategy. Federica Vello Treasury Manager of Geox

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SIMPLE, STREAMLINED, SECURE: HOW GEOX REVAMPED ITS TREASURY

Toward the end of 2015, we at Geox partnered with UniCredit to restructure our treasury, which had grown in line with our business to comprise a complex network of banking relationships, with dizzying numbers of accounts, platforms and security procedures across multiple countries and currencies. Harnessing new digital technology, the project fully rationalised and streamlined our cash management processes, banking relationships and connectivity to achieve greater efficiency and automation, better decision-making, and first-class security and data integrity.

Our company has grown from Italian roots to become truly international – incorporating 40 companies across 28 countries with more than 65 per cent of our turnover generated from sales in over 110 countries worldwide. As we expanded, so did the complexity of our banking and treasury infrastructure: 65 banks and 150 accounts, processing around 100,000 payments each year. Timely and accurate visibility across our global cash balances was, therefore, difficult to achieve – more so any efforts to standardise and automate underlying processes. On top of this, each banking system had different security procedures, meaning user profiles and passwords swelled to unmanageable levels.

Consolidating and streamlining the banking relationships, accounts and technologies used to manage our cash became a priority, with the aim of automating processes at Group level where possible, and adopting best practices in accordance with SWIFT to optimise the security and integrity of our processes.

Selecting our cash management banking partners was the first, most important, step. At the end of an extensive evaluation process, we chose UniCredit as one of just two preferred partners across several countries and currencies. UniCredit’s international reach amply covered the required geographical footprint, and we knew from previous work

with the bank that its cash management, digital solutions, and standard of service were all of the highest quality.

Putting the pieces together

Energised by this partnership, a pilot project involving 14 companies and four currencies kicked things off in late 2015. Encompassing domestic and cross-border payments, payroll and tax disbursements, both pan-European and domestic collections such as SEPA Direct Debit (SDD) and RIBA, and the retrieval of MT940 bank statements, the project went live in April 2016. The scale and complexity of the project – rationalising across so many countries, systems and stakeholders – presented a huge challenge and called for a careful approach. Implementing the project in phases to minimise risks and test the validity of all the solutions, we were impressed by UniCredit’s ability to balance competing requirements – carefully planning every stage to ensure that there were no loose ends and that all stakeholders remained aligned throughout the project.

As part of the implementation, we standardised our accounting software with German company SAP to manage

L eading footwear company Geox, in partnership with UniCredit, collaborated in an ambitious treasury project to rationalise cash management

processes, bank relationships and connectivity across the Group. Federica Vello, Treasury Manager of Geox, explains the thinking behind the project, the challenges and benefits of full implementation, and the impact of this collaborative effort on the wider Group strategy.

Federica VelloTreasury Manager of Geox

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financial transactions across the Group, and used Italian company PITECO’s comprehensive treasury management system. A key additional component to the execution is SWIFT, which is now the communication tool we use for connecting to banks worldwide. Implementing globally recognisable tools and systems such as these across the entire Group has proved hugely valuable, eliminating inefficiencies brought about by multiple outdated and incompatible legacy systems.

Proven benefits, a model for the Group

With the project now complete, the benefits of the implementation are clear. More consistent, automated processes have yielded significant efficiency gains, while the greater visibility we enjoy over cash flows and risk has dramatically improved our ability to make key decisions and align with Group strategy. We also enjoy top-tier security and data integrity thanks to alignment with SWIFT’s best-practice guidelines, and we are now exploring the possibility of extending our SWIFT compatibility to include FIN messages

for high-value payments. We are also considering extending the payment factory concept to “payments on behalf of” (POBO) in order to further centralise and streamline outgoings with UniCredit.

Innovation and technology are at the heart of our business philosophy, whether we’re working on finance or footwear. The successful completion of this project – a major milestone for Geox – stands as testament to this fact. While a project of this scale presented challenges, the end result was well worth the effort. Through a closer, more engaged relationship with UniCredit, and increased automation, efficiency and security in our cash management processes, the treasury serves as a shining example of departmental innovation and alignment with the Geox Group mission.

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“Geox’s Payment Factory solution entailed an added level of complexity, as it had to consider the specific needs and internal

organisation of the Group across a large number of different countries and subsidiaries, whilst also ensuring standardisation with SEPA requirements. Nevertheless, through strong commitment and collaboration with Geox we were able to navigate this complexity and introduce a suite of advanced products – at both national and international levels.

We are proud of the final results, rationalising and improving Geox’s treasury processes to ensure it operates to the highest industry standards. Geox is now fully able to handle the demands of its complex day-to-day operations – and has a firm foundation for future growth and efficiency. Working closely with the client resulted in a fully optimised solution, strengthening a key client relationship and demonstrating our commitment to always putting the client first.”

Massimiliano CirelliCash Management International Sales Expert Italy, UniCredit