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GasTerra and Deutsche Bank: Finding New Cash Management Efficiencies GasTerra’s cash management needs are focused around high value domestic and foreign payments. A Deutsche Bank solution sought efficiencies through automating processes while increasing system stability and security. This article describes how the company selected the new system and how it operates.

GasTerra and Deutsche Bank: Finding New Cash

Management Efficiencies

by Jan Bruintjes, Manager Treasury, Tax & Insurance, GasTerra B.V.

GasTerra’s cash management needs are focused around high value domestic and foreign payments. A Deutsche Bank solution sought efficiencies through automating processes while increasing system stability and security.

A Deutsche Bank solution sought efficiencies through automating processes while increasing system stability and security.

GasTerra, the Dutch energy trading company, was formed when Gasunie, the Dutch natural gas provider, spun off its trading business in 2005. Originally known as Gasunie Trade & Supply, the shortened name was adopted from September 1 2006 as the final stage in the separation of the two companies. GasTerra has a significant share of the Dutch gas market and also operates on the European energy markets. It is 10% owned by the Dutch state, 40% by Energie Beheer Nederland, 25% by Esso Nederland and 25% by Shell.

“After the split from Gasunie in 2005 we recognized that there was a need to upgrade our cash management and general treasury capabilities, but felt that we should wait for the optimal moment to do this,” says Jan Bruintjes, Treasury Manager at GasTerra. “Early in 2006, our former banking partner was implementing a new release of their cash management systems. Given the potential disruption that this would have caused, we saw that this represented a good opportunity to re-evaluate our treasury systems and banking relationships.”

The company put out a Request for Proposals (RFP) detailing its cash management and treasury needs. Five separate banks presented, before GasTerra settled on a shortlist of three.

“Each bank was assessed on the basis of 24 separate criteria,” says Bruintjes, “with the most important being system security and stability, the ability to provide same-day value for all domestic payments and the scope for an intra-day financing facility as well as year-end financing. Other considerations included deposit facilities and interest conditions.”

The whole RFP process took around six months, and Deutsche Bank began implementing the new system in early 2007. “Deutsche Bank’s offering impressed us greatly - not just in terms of their solutions matching our criteria, but in terms of the depth of expertise and the quality of their advisors,” says Bruintjes. “We also had the opportunity to speak to several long-standing Deutsche Bank cash management clients who all reported favourably on the service. However, their ability to interface seamlessly with our SAP EDI [Electronic Data Interface] system was also a key selling point.”


Seamless integration

The company’s previous system involved a great deal of manual entry for authorizing payment files, at an additional expense. Meanwhile, the new platform offered a high degree of automation and Straight Through Processing (STP).

“Although our previous provider had offered to construct an automated system for us,” says Bruintjes, “we felt that using Deutsche Bank’s tried and tested db-direct internet platform would afford us greater stability and security.”

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