Introduction - SAP Forum Basel · PDF fileIntroduction Metalor Refining ... •Business...
Transcript of Introduction - SAP Forum Basel · PDF fileIntroduction Metalor Refining ... •Business...
Introduction
Nicolas Carrera
Group Treasurer, Metalor Technologies, Switzerland
Speaker biography
Nicolas is the Group Treasurer of MetalorTechnologies SA, Switzerland. He has performed this role since October 2013. Prior to taking the position of Group Treasurer, he worked as the European Area Treasurer for 4 years. He is an experienced finance professional with more than 14 years’ experience in Treasury and trading. He has played a key role in the implementation of the Group’s Treasury Management System.
Aniket Kulkarni
Director – Treasury & Trading, PwC, Switzerland
Speaker biography
Aniket Kulkarni leads PwC’s Treasury and trading technology practice in Switzerland. Prior to joining PwC, he worked as a global product manager for treasury and commodity risk management in SAP. Anikethas a team of experts, helping corporates and trading companies in implementing treasury and commodity trading systems and processes. He holds an engineering degree and a post graduate diploma in finance, and is certified treasury manager CTM.
Transformation of treasury processesat Mealor
Nicolas Carrera – Group Treasurer, Metalor Technologies Switzerland
Agenda Introduction
Project
Roadmap
Success factors
Introduction
IntroductionMetalor Refining
• Refining of high grade and complex precious
metal doré and scraps
• Gold, platinum, palladium, silver, rhodium
• Good delivery status on all exchanges
• Added value powders and grains and other
semi-finished products
Metalor Advanced Coatings
• Electrolytic processes and chemicals for
decorative and electronic industries
• Chemical and electrolytic silver powders for
use in electronics and solar industries
• Commodity and proprietary product portfolio
• Strong customer service component, diverse
and large customer base
Metalor Treasury and PM Management
• Important lease lines from more than 24 banks
plus other key banking relationships
• Full hedgining of all metal flows and 7 precious
metals
• Rapid and precise settlement of purchases key
to refining competitiveness
• Buy/sell and interest rate margin income
• Inventory control and management
Metalor Electrotechnics
• Manufacturer of electrical contacts for the use in
low voltage applications
• Products developed for customer specific
applications (Siemens, ABB, Schneider etc.)
• Long qualification periods followed by long
product lifecycles
Complementary but distinct businesses
at-arms-length
MetalorOverviewBusiness Structure
Refining
Distribution
Process control
Transportation
Domestic goods
Global coverage Electronics
Scrap recycling
Solar cells
Decorative coatings
Good delivery bars
Display
Connectors
Switches
Watch components
Semi-conductors
Watches
Jewelry
Consumer
Electronics
Computer
applications
Luxury
CustomersProduction
Applications Key-end MarketsManufacturing
USA
Europe
Asia
Global manufacturing network to serve diverse customer base / end markets
Electrical
Mining
Recyclers
Banks
Project
Project Drivers
8
2004 2012
Lease lines 400m 2,6bn
Banks 1 23
Regional
Treasuries1 4
Legal entities 15 25
Trade volume 4.84 bn 27.38 bn
Project coverage
9
Organisationaldesign
Policies and procedures
People Systems
Project Objectives
10
• Improve effectiveness of risk management processes
• Enhance internal control
• Increase efficiency in treasury by implementing new
and enhancing current system-based solutions
• Increase integration both within treasury and between
treasury and business lines
• Enhance business choices for customers
• Enhance flexibility for changes to business operating
model
• Provide a better base to realise more value from the
metals and FX flows in the company
Risk
Management
and Internal
Controls
Operational
Efficiency
Business Model
Approach
11
• Determine target operating model and business case
• As-is process mapping – creating baseline for change
• To-be process and system landscape – determine
future operating model
• Business case underlying the sub-project
• Roadmap and project plan
• Treasury Management System selection
• Metals and FX trading platform selection
• SWIFT service bureau selection
• Selection of 3 key banks for phase 1, 3 in phase 2
• Implementation of TMS
• Roll-out of TMS in Metalor’s subsidiaries
Solution
Assessment
Solution Design
Solution
Implementation
Project design principles and solution components
Principles Principle result Solution
1. All trade related
information
captured in
Metalor
systems (once),
STP
• All trade information in the system (leases, swaps, forwards)
• Straight Through Process (STP) in the whole chain:
- Invoicing
- Payments (single bank communication channel)
- Trading (connected trading platforms)
- Confirmations (automated confirmations where possible)
- Potential use of customer interface
• Reduced costs for payments, confirmations
• TMS
• SWIFT
• Multi-bank
trading
platforms for FX
and Metals
• Global cash
management
• Confirmation
matching
• Documenting
Group Treasury
Policies
• Customer
interface
2. Improved
internal control
• Mitigation of operational risk
• Strengthening of internal controls (preventive and detective)
and segregation of duties
3. Improved
regional and
global reporting
& analysis
capabilities
• Achieve timely and automated visibility on:
- Cash positions and short term forecast
- Lease lines and metal positions
- Bank relationship management
• Reporting capabilities will allow improve decision taking and
risk management
4. Improved
service to the
group and
clients
• Consistent ways of working and communication in the group
• Increase service to clients through additional products
• Treasury Management System will support other
projects(IFRS)
Coverage and roll-outs
70 users
7 countries
15 users
2 countries
30 users
4 countries
• Global treasury center and 3 regional / area treasuries – Single instance
• System designed to cover round the clock trading
• More than 100 users globally across 14 countries
• Global template with local regulations and specialties (VAT)
• Payments and settlements with 15 banks; 3 major banks on SWIFT in phase 1
• MT6xx messages for confirmation and settlements globally
SolutionTrading Platforms (Bloomberg, Banks)
Customer Request
Internal Request External Request
Accounting
Cash Management and Bank Reconciliation
Metals trading Treasury
Precious metals leasing and metal balance sheet
Customer Deal
Invoice
Internal trades and confirmation
Internal invoicing
Trade capture and confirmation
Trade Settlements
Banks
Why SAP? • Metalor runs a single instance of SAP globally
• Seamless integration - the key requirement from treasury and commodity management solution
• Dependency on the underlying metal and foreign exchange flows for treasury
• SAP solution could manage complex correspondence, settlement and payment messages via SWIFT network
• The only system which could achieve true STP from trade capture, confirmation, settlement, payment and accounting.
Project scope Treasury applications from SAP
SAP Treasury and Risk Management
Risk Analyzer
SAP Bank Communication Management
SAP Cash Management
Correspondence Monitor – Precious Metals and FX
Cash Management Bank Reconciliation
Market Risk
Precious Metals – Customer Quote and Deal Request Management
Money Market FX MetalsDerivatives Metal Leases
Trading P&L
Transaction Manager
Simplified user interface – Agent of change
Project planProject Workplan Steps 1 2 3 4 5 6 7 8 9 10 16
Assess
• Kick-off and detail project planning
• Requirement analysis and gapping
Design
• Business process design
• Business and solution design of Web portal
• Business and solution design of SAP Treasury and
risk management – Transaction manager
• Business and solution design of Exposure and
hedge management and market risk analyzer
• Business blueprint sign-off
• Design of interfaces
Construct
• Development of custom functionality
• Development of interfaces
Implement
• Set-up and implement Organization structure and
FICO
• Set-up and implement SAP Treasury , and risk
management, hedge management and web portal
• User training
• User acceptance testing
• Integration testing
• Roll-out templates
Operate and Review
• Cut-over and go-live preparations
• Go-live
• Roll-outs
SAP systems
Monthly status update with management
Change management
Prototypes in
Sandbox system
BP
Interfaces
System set-up –
Development
system
Training and
testing
Live
Roll-out
Sandbox Dev Quality Prod
Change management
strategyExecution
Supporting templates for the transformation
Business process mapping User Guides per Role
Business process mapping for each
treasury process, from Front Office to
Settlement and Accounting
Detailed user guides to guide users
during testing and system usage.
Roadmap
Roadmap
Payment factory: Bring all the operational payments on a single payment platform using SAP Bank communication management (BCM)
Cash concentration: Implement SAP In-house cash (IHC) for cash concentration
Analytics and Dashboards: Set-up analytical reporting and dashboards in SAP BO (Business Objects)
Future Roadmap
Success factors
Success factors
• Involvement of key internal people who are subject matter experts
• Support from Executive and senior management
• Support from IT and commitment of key IT resources
• Relationship with consultants in the project
• Engaged PwC from start (assessment) to the end (implementation and
roll-outs)
• Relationship with banks