Treasury Today Country Profiles in association with Citi

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Cummins Asia Pacific Pte Ltd, Highly Commended, Best Cash Management Solution

Jennifer Leong and Jasline Chua, Cummins Asia Pacific and Vijay Shankar, ANZ

This US-headquartered company hadn’t reviewed their transaction banking provider for more than ten years. They were looking to optimise functionality, service and visibility across three important geographies – Australia, New Zealand and Papua New Guinea.

Photo of Jennifer Leong and Jasline Chua, Cummins Asia Pacific and Vijay Shankar, ANZ.

Jennifer Leong

Treasury Director, Asia Pacific, Corporate Treasury

Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 55,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations. Cummins earned $1.4bn on sales of $19.1bn in 2015.

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The challenge

Cummins South Pacific had not reviewed their transaction banking provider for over ten years and were looking to optimise functionality, service and visibility.

The company’s strategic objectives included:

  • Consolidating its banking arrangements in all three countries (Australia, New Zealand and Papua New Guinea (PNG)).

  • Simplifying and implementing connectivity across the three countries.

  • Achieving enhanced visibility and control of cash regionally and globally.

  • Optimising yield and reducing banking costs.

  • Providing scalability for growth.

The solution

ANZ Bank demonstrated strong customer and relationship focus with teams supporting and working with Cummins in the USA, Singapore, Australia, New Zealand and PNG in delivering their cash management solution.

Cummins undertook an extremely thorough selection process in selecting their new banking provider. The company executed an exceptionally detailed evaluation process that required the bank to prepare multiple presentations, detailed Q&A sessions and technology demonstrations.

In addition to providing referees, the bank organised in-person interviews with independent bank customers whom had recently selected the bank, to allow Cummins to fully explore and understand first-hand the chosen bank’s implementation capability and ability to manage the associated risk of change.

As Jennifer Leong explains “In addition, the bank demonstrated a true collaborative team effort across the network covering teams in Australia, NZ and PNG and extending to Singapore for regional treasury coverage and ultimately through to the Cummins’ parent entity in the USA which was mirrored by the bank’s relationship teams and operations and coverage.”

Key benefits

  • Centralised control and visibility of cash with concentration of funds, optimising yields and reducing reconciliation effort by consolidating accounts (reducing from three banks to one).

  • Eliminating duplicated processes and providing scalability by moving to one banking platform, lowering the cost to do business and managing risks.

  • Simplicity, efficiency and business improvement achieved via streamlined day-to-day management of receivables and payables – achieved through a single cash management banking platform.

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