Fossil debuts smart automated FX solution in India
Published: Feb 2025
Best in Class Treasury Solution in India
Highly Commended Winner
Fossil
Photo of Bee Teng Teo, Fossil and Joey Koh, J.P. Morgan.
Vikash Jain
Head of GBS
Fossil Group, Inc. (Fossil) is an American fashion designer and manufacturer with a presence in over 140 countries and 400 retail locations.
in partnership with
The challenge
Fossil was determined to strengthen and optimise its business operations with strategic reviews of its business models and structures. As a global company, Fossil has two different entities in the same group in India, and their misalignment created a foreign exchange (FX) risk. This brought to light an opportunity for growth within Fossil’s global treasury management space.
The solution
In partnership with its global bank, J.P. Morgan, Fossil has created a bespoke solution that combines the key principles of automation, FX management and treasury transformation. This solution allows the implementation of a net-pricing outcome theme, matching foreign currency across the two separate entities within the same group. The process is automated following user validation, with an option of moving the transaction to a second-level manual check and a built-in threshold to ensure security.
As well as different technical solutions, this has created a best in class treasury services framework, with the added advantage of overall regulatory support. Combining an automated unitised time deposit (UTD) solution to manage excess liquidity, and host-to-host (H2H) integration with the company’s domestic payables, Fossil’s current implementation and cross-border payments have been revitalised with this fully digitised solution.
Best practice and innovation
Through this innovative approach to treasury services, Fossil Group can implement a strategy that addresses the pain points surrounding automation, foreign exchange management and treasury transformation. A three-pronged structure also enables overall regulatory support to guide technical processes along these themes.
This solution was accomplished on several fronts. It properly addresses both the accounts payable and accounts receivables to mitigate client FX risk.
Overseen by the GBS entity, which manages the cash for the entire Indian operations, the solution benefitted the company at scale, providing close attention to detail within liquidity management, cross-border payment efficiency, and H2H integration, and, crucially, it has established best practices for Fossil.
Schematic
Key benefits
Cost savings – upwards of US$150,000.
Process efficiencies.
Risk mitigated.
Improved visibility.
Number of banking partners/bank accounts reduced.
“This solution revolves around the key themes of automation, foreign exchange management and treasury transformation, the drivers of the successful results for our company. The ‘net pricing outcome’ solution allows us to match our receivables and payables in foreign currency to ensure net-zero FX outlay,” explains Vikash Jain, Head of GBS.
Aparajith R, ‘AJ’
Vice President, J.P. Morgan
Fossil Group, Inc. (Fossil) is an American fashion designer and manufacturer, whose ‘sweet spot’ is found in the balance between innovation and classic style, with future-forward lifestyle accessories. J.P. Morgan is proud to have collaborated with Fossil to create a bespoke solution that combined key principles of automation, foreign exchange (FX) management and treasury transformation. Our strong relationship and commitment to best practice creates opportunities for growth in an unlimited number of other markets.
in partnership with
The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 406 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia
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