Luxottica appointed Bank of America Merrill Lynch (BofAML) to provide a cash management solution (including ZBA implementation) in the US, deposit services, ZBA in China through UnionPay, a point-of-sale (POS) collection solution, and online collections. Also on the cash management side, Luxottica’s implementation of a treasury management system (TMS) has allowed its treasury team to manage cash flow forecasting and better support the business in its development projects.
The implementation of the cash management solution in the US was a significant challenge in particular, owing to the company’s complex network of several cash pooling structures in the country.
Luxottica simultaneously rolled out a new global distribution channel, called ‘Online’, to collect payments from website sales, in order to support collections using all available local and international payment methods.
And the latest development is Luxottica’s e-commerce solution. Collections for RB.Com in the US, China and Europe have been implemented, supporting the business and enabling it to offer simple and fast customer services.
Best practice and innovation
The solution is notable in the way it simplifies and centralises retail collections. “The China UnionPay collection solution is helping us to gradually centralise our retail collections to a single account, and the bank is leveraging its partner bank CCB to provide efficient cash deposit services for our retail stores,” comments Marianna Mitolo, China and Asia Treasury Manager. “The bank’s electronic banking platform has streamlined our daily operations and allows us to manage our cash flows and accounts payables and accounts receivables more effectively.”
With integrated business support across continents, the solution has been made possible by an international team of 20 from across four continents, based in five different locations (the US, Ireland, Italy, China and Brazil). The Luxottica treasury team has been proactive and collaborative, following a simple and fast approach.
“As a result of the solution, the company has been able to centralise flows and collections processes while improving information reporting capabilities. The USD and RMB cash pooling solution has helped the company significantly reduce its financing and administrative costs,” concludes Marco Bigatti, VP Finance and Group Treasurer.
The Luxottica treasury team demonstrated great flexibility in its implementation of a cash management solution, supporting the company in following best practices while increasing efficiencies and return for the company.