Judy Bouchard, Banking Coordinator of Corporate Treasury, explains the company’s challenge: “We identified the need to centralise and standardise the cash and banking activities for our business units in EMEA. We determined that significant opportunities were needed to improve efficiencies while reducing risk, as well as to standardise processes and tools.”
In response, an internal task force was formed to centralise the European Financial Shared Services (EFSS) cash and banking unit, working to save corporate cash that could be more efficiently allocated and to improve financial efficiencies and controls. The project involved 80 entities that were operating more than 200 bank accounts.
ConocoPhillips appointed Bank of America Merrill Lynch to help deliver the solution. This involved the implementation of global standard processes and procedures including host-to-host connectivity with Bank of America Merrill Lynch for automated transmission of payment and receipt files and the implementation of SAP Electronic Bank Statement Functionality (EBS), which provides ConocoPhillips with the ability to perform daily bank account reconciliations or reviews. Both of these implementations significantly reduced manual intervention, improved controls and streamlined the overall payment and receipt process.
The project was completed in 2009 and the implementation of the EFSS Cash and Banking unit resulted in net savings of 3.8 full-time employees, which led to significant savings of hard dollar costs. This evaluation and implementation project was successfully completed over an 18 month period, led by a team of three without the use of any consultants or full-time dedicated resources, and during a time of reorganisation within the company. The effort required significant communication and change management activities, which ultimately helped to forge and improve relationships and collaboration between the treasury department and the business units.
“The Award is a reflection of the team’s collaboration, efficiency and focused execution. We are pleased to be recognised as a best in class treasury organisation among the world’s leading corporations.”
As a result, future collaborations and knowledge-sharing among these groups is expected to further improve the process and decrease monetary and resource commitments. With this, ConocoPhillips is soon to begin evaluating the Asia-Pacific Region.
ConocoPhillips is world renowned for its technological expertise and fiscal responsibility. Further evidence of the company’s dedication is clear through this cost-saving initiative to centralise its European Financial Shared Services.
“ConocoPhillips has the highest level of commitment to best practices within cash management standards,” Bouchard said. “We have strong senior management support and this top-down and bottom-up approach to integrating global standards is paramount to our continued efficiencies. Our communication standards foster a continual learning environment to share amongst our vast network of Treasury practitioners and to ensure our Treasury centres are collectively aligned with global standards that sustain the long-term business objectives of ConocoPhillips.
ConocoPhillips is honoured to receive Treasury Today’s Highly Commended Award for Best Practice and Innovation in the Payables and Receivables Solutions category.
The Award is a reflection of the team’s collaboration, efficiency and focused execution,” Bouchard said. “We are pleased to be recognised as a best in class treasury organisation among the world’s leading corporations.”
