Introducing the Stars of Cash & Treasury Management
in association with BNP Paribas
by Helen Sanders, Editor
TMI has an established reputation for promoting best practices and innovation in cash and treasury management and recognising the achievements of corporate treasurers globally. As a leading cash management bank both on a pan-European basis and throughout its global network, BNP Paribas espouses these same principles. This year, therefore, TMI has been delighted to present the TMI Star Awards in association with BNP Paribas. The awards were open to corporate treasurers globally and decided in three regional categories by an independent panel of experts chaired by Helen Sanders, Editor of TMI. Award winners for each region were then put forward for the Global TMI Star Awards.
Awards were presented at the EuroFinance Conference in Miami (North America Awards) and at BNP Paribas’ Cash Management University in Paris (Europe and Asia Pacific Awards). The TMI Star Global Awards were also presented at the Cash Management University.
Campofrio Food Group
Readers of TMI will already be familiar with Campofrio’s working capital initiative (edition 232) for which its treasury team has won a TMI Star Award. Like many companies, Campofrio Food Group had to reinvent its treasury activities as a result of the global financial crisis. Despite the Group non-investment grade rating and extremely adverse financial markets conditions for periphery-based companies, under Luis Montesinos’ leadership the company has reinvented its treasury activities both to overcome the immediate crisis, and ultimately to benefit from a virtuous cash flow cycle, as well as a responsible attitude to financing.
Firmenich has developed a sophisticated in-house bank over the past two years, leveraging the implementation of a single SAP instance which is recognised by the TMI Star Award for cash management. The in-house bank includes a zero-balancing global cash pool across 26 entities, operates an intercompany netting process, and centralises payments through a payments factory operating on a payments-on-behalf-of (POBO) basis.
Honeywell was recognised as a TMI Star in liquidity management. Since the financial crisis, Honeywell has built a cash balance of $8.4bn, and it was becoming increasingly difficult to manage credit risk to its 363 counterparties. Treasury has worked with its technology providers, SunGard, Reuters and SAP to develop a sophisticated cash and investment reporting tool that has enabled Honeywell to take a more strategic approach to liquidity management. This includes unlocking trapped cash, reducing idle cash balances, diversifying investments and revising the investment policy in line with Basel III requirements.
Lafarge was the winner of the TMI Star Award for technology for its Connect project. This involved implementing a single group connectivity hub based on SWIFT connecting to each of Lafarge’s cash management banks for payments processing whether these are conducted centrally or by local business units. Users have a single sign-in and single approval tool, enabling consistent controls. The payments hub is configured to convert the file formats of each originating system to the relevant bank format, so that existing formats and local payment processes remain unaffected. Security, process efficiency and business continuity have been greatly enhanced, with significant cost savings as a result of eliminating a large number of local banking systems and interfaces.
Lafarge is currently in the process of merging with Holcim, a leading supplier of cement and aggregates.