TMS Implementation at Fiberweb

by Christof Nelischer, former Group Treasurer, Fiberweb

Fiberweb plc is one of the world’s largest and leading suppliers of high performance, specialty non-woven fabrics. One of the ways it seeks to drive profitable growth and enhance its competitive position is by improving cost reductions and operational efficiency on a global scale. Following the company’s flotation in 2006, it was faced with the challenge of setting up a best practice treasury operation in a short timeframe, as described in a previous edition of TMI. As part of this project, Fiberweb made the decision to implement the Wallstreet Treasury ASP solution to support a streamlined, efficient Treasury operation without placing a heavy burden on resources.

One of our objectives was to introduce best practice models for key treasury operations and services to the rest of the company.

Business overview

Non-woven materials developed, manufactured and marketed by Fiberweb are used in a wide variety of everyday products such as filters, industrial wipes, baby diapers, fabric softener, construction products and protective clothing. With extensive experience in its field, Fiberweb has long been regarded as a technological innovator with an extensive portfolio of intellectual property. Fiberweb leads the market in many of its product and application areas using a variety of leading manufacturing technologies, including several proprietary processes. With revenues approaching a billion dollars and over 2,000 employees worldwide, the company has a strong global position. Fiberweb’s shares are listed on the London Stock Exchange (FWEB.L).

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The challenge

Fiberweb was previously a division of another UK company, BBA Group plc, until it was decided to spin the company off, and float it independently in November 2006. As such, it had no corporate function of its own. Treasury had been run centrally by the former parent company, so Fiberweb had no systems, few cash pooling arrangements, and no money market facilities with which to start. Consequently, when the new management team arrived, we faced the task of building a treasury function entirely from scratch.

One of our objectives was to introduce best practice models for key treasury operations and services to the rest of the company. Part of this initiative was a review of how treasury could deliver added value. The head office and treasury team are small, so best practices had to be introduced without placing undue pressure on resources, or demanding too much support from the IT team.

As a global company tasked to deliver value-added services to the company, our treasury team are often required to spend time in other parts of the business. We therefore needed to be able to access the system remotely and conduct business regardless of time zone or location.

Solution

Following an initial selection process, we devised a shortlist from which we decided to select Wallstreet Treasury ASP. We were confident that the system supports compliance with international accounting standards, and includes the functionality we need to run our day-to day treasury operations, including cash management, deal management, risk and accounting. It was important for us to be able to implement and start using the system quickly to provide the necessary control and operational support for our treasury, with as little involvement from IT as possible. As an ASP solution, we avoided the need to invest in new hardware or additional software, and Professional Services and training were included as part of the overall cost of the solution.

We have saved many man hours, as well as benefiting from the functionality and features of the system.

For Fiberweb, the ASP model was particularly attractive because it meant that we could benefit from best practice treasury operations without having to dedicate extra internal time and resources. The ASP also meant that upgrades could be managed and rolled out by the supplier, reducing our risk and the time and effort required for to keep the system up to date. We were also confident in the reliability of the solution, which is hosted in a SAS 70 Type II certified data centre, run by Savvis.

Implementation took approximately three months, from selection to go-live. This was primarily managed internally, with some engagement from Wallstreet’s Professional Services team. Implementation was extremely smooth, with no major issues or set-backs, and was delivered on time and on budget

Benefits

Once static data had been entered into the new treasury system, which was quite limited as a start-up treasury operation, we began to see the benefits almost immediately, as the system supported our objective to be a more streamlined and efficient operation. We have saved many man hours, as well as benefiting from the functionality and features of the system. The requirement for location-independent access has been met and we can now perform transactions at any time, from anywhere in the world. The acid test came when I found myself doing a number of FX deals and loan transactions while in the US, and it worked flawlessly. The audit trail was identical to what it would have been like had I been in the office.

Accuracy has also improved, and the margin for human error has been reduced, because of the automated nature of the system. Reporting and audits are now far more comprehensive and easier to generate than before, helping us to achieve compliance with international accounting standards.

The system has also facilitated the introduction of rules-based policies and roles and responsibilities. Authorisations are now more transparent and can be accurately allocated - all of which contribute to greater efficiencies.

Going forward, we plan to extend the benefits of Wallstreet Treasury ASP by making full use of the auditing, internal loans and reporting functionality and there may be a business case to use the system for managing a netting program at Fiberweb.