Photo of Klaas Springer, Jeroen Brieffies, Marije Siebenga, David Tillmanns, Royal FrieslandCampina and Michiel Reijnoudt, Citi.
The treasury team at Royal FrieslandCampina has demonstrated you don’t have to be a big team to make a real impact. They have implemented several projects in just 16 months across a broad spectrum of cash, treasury, technology and financing areas.
Royal FrieslandCampina N.V.
FrieslandCampina is a Dutch dairy cooperative. It is the result of a merger in December 2008 between Royal Friesland Foods and Campina. FrieslandCampina is Europe’s largest dairy cooperative and one of the top five dairy companies in the world, with annual revenue of €11.4bn. FrieslandCampina has offices in 28 countries and employs a total of 21,186 people.
in partnership with
The company’s vision was to move forward in its centralisation effort (aiming to be centrally responsible for all treasury operations globally) and rank in the top quartile compared to its peers. Simultaneously, it had to proactively support the execution of its corporate strategy (known internally as Route 2020), effectively moving the company upwards in terms of value-added production.
Between 2015 and 2016, the treasury team delivered on the following core projects:
In treasury operations/cash management
It implemented a central cloud-based payments platform, effectively removing all e-banking systems and providing the sole connectivity point from FrieslandCampina’s ERP to its banks.
With the European shared service centre, cooperative affairs and treasury live, more than 70% of all payments are now running on the platform. Asia is currently being implemented. Five banks, including Citi, have so far been connected to this key system, with two more to follow soon. These are host-to-host connections, but the possibility of SWIFT connectivity has been incorporated.
All foreign exchange is now being traded on a single third-party platform with treasury as the only external trader. In Asia, FX is traded onshore by the Asian treasury manager ‘on behalf of’. The only exceptions are Nigeria and Vietnam.
This project saw the implementation of a central account opening and closing process as well as a company-wide annual Standard Internal Bank Confirmation (SIBC) procedure in which all finance directors have to sign off on their inventory of accounts and authorisations so that it is aligned with content of the treasury management system (TMS).
Project Ben Nevis
Here an RFP was issued for a new pan european cash management bank in Q215, with the selection made at the end of Q315. It is now in the process of implementation and it is envisaged that this will be completed at the end of Q216.