How India's leading Air conditioning and Commercial Refrigeration company automated their Treasury & Trade Finance function

India's leading air conditioning and commercial refrigeration company, with an annual revenue of over ₹6000 crores (over US$ 770 million),a network of 32 offices, 5 modern manufacturing facilities, 2800 employees, and 3600 channel partners with over 5500 stores for room ACs, packaged air conditioners, chillers, cold rooms as well as refrigeration products and systems; along with 1060 service associates reaches out to customers in over 900 towns.

Challenges

• The Company has deployed SAP S/4 HANA, an Enterprise Resource Planning (ERP) product, to take care of their manufacturing, Material Management and Accounting requirements. The trade finance operations were primarily managed manually which led to following challenges:

• All the Banking activities related to trade finance were maintained in Excel spread sheets.

• Underlying exposures were maintained in SAP.

• Accounting entries by respective team were entered manually in SAP.

• Pre-automation 80% of LC requests were entered manually into SAP.

• A third-party application (Star Vault application) was used for managing the documents.

Benefits

• Process automation leading to improved operational efficiency of 40% saving in person-hours on an average across Front, Middle and Back office

• Reduction in manual intervention leading to error free accounting entries by back office and in turn reducing operational risk

• Well-defined workflows leading to streamlined business processes

• Real time access to business data, open exposures, audit trails and documentation

• Strong governance backed with efficient and felicitous management reporting in the form of intuitive dashboards and analytics

• Single point of truth for the decision makers and stakeholders.

Client Feedback:

Kundip Thakker, Head – Treasury, Blue Star Ltd.

"Many organizations still struggle with using ERP as the solution for Treasury management. It may not be feasible to use ERP, as treasury function requires a dedicated solution designed for the purpose of automating the Treasury operations. We selected IBSFINtech as their comprehensive offerings helped us automate our trade finance operations with holistic approach. It is a standardized product, having most of the business scenarios pre-existing in the product and if required solution configuration as per the corporate workflows is very easy. The solution played a pivotal role in improving process efficiencies, ensuring data accuracy and 360-degree visibility. The embedded risk policy is the added advantage for us to ensure compliance and transparency of the entire operations."