Centralization Case Study

Centralizing Asia-Based Treasury Yields Benefits for Global HR Firm

by Adrian Perez

The Firm

A human resources (HR) advisory firm that provides senior-level executive search and leadership consulting services, with hundreds of consultants in more than 70 locations worldwide.

Challenge

As the firm's global presence grew, its back-office processes developed country by country, resulting in a fragmented and decentralized treasury model. In 2009, it decided to centralize and standardize back-office functions and integrate a new global finance system.

Solution

The firm consolidated its banking across 13 countries in Asia with J.P. Morgan, including in-country accounts, centralized payments and an enhanced automated liquidity structure. Today, the firm's centralized corporate treasury structure, along with regional management in Hong Kong, sets global policies for the region's cash management and forecasting with enhanced visibility, operational efficiencies and risk management.

Key Benefits

Enhanced Visibility

 
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Meet the Author

Photo: Adrian Perez, International Treasury Specialist, Chase Commercial Bank
 

Adrian Perez
International Treasury Specialist

Adrian specializes in helping multinational companies implement global best-practice cash management and liquidity solutions. Adrian holds the Association of Corporate Treasurers Certificate in International Cash Management (CertICM) designation and is a regular speaker at various treasury-related conferences.

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  • Gained visibility into balances and control of transactional flows
  • Improved control over company expenses through transparent pricing across the region

Greater Operational Efficiencies

  • Reduced errors by implementing a single upload/download from the enterprise resource planning (ERP) system
  • Improved reconciliation and increased efficiency by standardizing processes

Improved Liquidity Management of Asia-Pacific (APAC) Balances

  • Enhanced yield on operating balances
  • Realized value for funds held in restricted markets, such as the Chinese Yuan (CNY) and Indian Rupee (INR)

Reduced Costs

  • Lowered intangible administrative costs resulting from duplication of treasury functions
  • Reduced the number of bank accounts to reconcile and maintain

Enhanced Risk Management

  • Lowered risk with foreign exchange spot conversion and cash movement by eliminating the physical movement of cash
  • Gained access to information updated in real time
  • Achieved greater adherence to Sarbanes-Oxley (SOX) guidelines
  • Reduced counterparty risk exposure
 
 

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