The challenge:

By doing so, the company would be able to plan cash and liquidity decisions with more confidence, analyse cash flow trends effectively, and reduce the cost and resources required for financial reporting. These objectives were particularly challenging bearing in mind that few solutions in mainland China provide cash flow forecasting capabilities.

The solution:

CSCL has had a highly successful partnership with Citi for more than a decade, including cash collections and cross-border cash pooling for its entities in more than 40 countries. Based on this experience, CSCL recognised Citi’s expertise in delivering flexible and robust cash and liquidity management solutions, and innovative technology.

CSCL’s treasury therefore decided to expand the relationship with Citi to implement TreasuryVision^®, including its cash flow forecasting module, the first company in mainland China to do so. The solution covers accounts with Citi globally, including accounts held with third-party banks during subsequent project phases.

The solution supported CSCL’s cash visibility and forecasting objectives, and was also more cost-effective than a treasury management system or ERP solution. By implementing TreasuryVision^®, CSCL now has timely, accurate and complete visibility over its cash positions and fund movements. Information can be consolidated at different levels, from group level through to individual business segments, regions and business units.

As the treasury no longer has to produce this information manually, the risk of error or omission is eliminated, resourcing requirements are greatly reduced, and information can be produced quickly and in a flexible format.

Best practice and innovation:

CSCL has raised the bar in its treasury management. The team now produces sophisticated cash flow forecasts using a bespoke template to reflect the specific needs of the business, together with the ability to present data over a variety of horizons and levels of consolidation. Cash flow forecasting capabilities are supplemented with a variety of advanced analysis tools such as variance analysis, what-if calculations and stress testing, and workflow tools such as personalised alerts of account movements.

Implementing Citi’s TreasuryVision^® has been a vital step in transforming CSCL’s treasury function into a highly automated, efficient department that positions the company for future international growth.

As Rong Li, General Manager, concludes, “with greater visibility and insights into current and future cash flows, CSCL is now in a position to manage liquidity and risk in an efficient and cost-effective way.”