Photo of Ilkim Saracel, Nextracker and Bruno Lopes, PwC.
Ilkim Saracel
Director, Assistant Treasurer
California-based Nextracker Inc. (Nasdaq: NXT), is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Their products enable solar panels power plants to follow the sun’s movement across the sky and optimise plant performance in more than 40 countries worldwide.
in partnership with
The challenge
Breaking up is never easy. When US solar firm Nextracker parted company from Singapore’s Flex in late 2023, Flex kept the treasury department as well as all the treasury-technology in the split – Nextracker would have to set up new treasury systems and processes as a standalone entity.
But it sounded the starting gun on a complete re-imagining of Nextracker’s treasury strategy in a tight, nine-month deadline complicated by the fact Nextracker’s internal finance team had a headcount of just one.
The solution
Working with PwC, Nextracker planned its vision for an efficient, modernised treasury incorporating both tactical and strategic improvements designed to enable collaboration and transform user experiences across all functions interacting with treasury.
Nextracker implemented GTreasury as a centralised treasury management system (TMS) to streamline experiences for accounts payable, collections, accounting, and other departments and functions across the business. Next the company introduced a new TMS facilitating cash positioning, payments, accounting, reporting, FX, credit risk management, collection and vendor onboarding via seamless automation.
The company hired four additional personnel at staggered intervals halfway into the project and began selecting partners across its banking and treasury system functions, hunting for relationships with the right cost and usability fit, especially given its own small internal team. The company also addressed inefficiencies like the large number of stakeholders impacting too many treasury decisions. For example, FX trades were performed, approved, settled, and accounted for in four different countries, making the process fragmented and decentralised.
Best practice and innovation
Nextracker overcame challenges around decision-making and tight deadlines by putting together a treasury transformation steering committee to foster cross-team motivation and decisive management. The committee successfully defined processes and achieved cross-functional alignment. This included breaking down the workload into small units and assessing and adapting plans on a weekly process to maintain progress.
The steering committee solved bottlenecks and kept to deadlines. Nextracker also established RFPs with vendors in record time, further expediting progress. Additionally, the company found preparing detailed backup plans to be an important part of the process.
The steering committee successfully overcame initial resistance rooted in competing priorities. It engendered collaborative engagement with partners across the organisation and external ecosystem, and successfully coordinated implementation of the new treasury system and processes integrating best practices and innovation.
Nextracker’s treasury transformation has saved the company from hiring an estimated 15 full-time employees and saves (conservatively) more than US$1m annually as a result of this project.
Nextracker has built a mature treasury practice that adds value across the company’s teams in just six months. It implemented a highly efficient treasury solution from scratch within a tight deadline, all the while introducing significant cost, risk management and user benefits that are built to scale for the future.
Key benefits
Cost savings.
Headcount savings.
Process efficiencies.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Exceptional implementation (budget/time).
Bruno Lopes
Global Treasury and Working Capital Partner, PwC
Nextracker showcased exceptional agility in establishing its treasury function to bolster the company’s worldwide operations. With remarkable speed, they implemented cutting-edge technology and assembled a skilled team to enable efficient cash flow management, risk mitigation and strategic decision-making. By swiftly setting up the treasury function, Nextracker demonstrated their commitment to optimising global operations, enhancing financial controls and driving sustainable growth. PwC is truly grateful to be their trusted partner on this transformation journey.
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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 389 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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The steering committee successfully overcame initial resistance rooted in competing priorities. It engendered collaborative engagement with partners across the organisation and external ecosystem, and successfully coordinated implementation of the new treasury system and processes integrating best practices and innovation.
