Best Practices for Growing a Successful Program

Transcription

1 Treasury and Trade Solutions Citi Commercial Cards 2015 Commercial Cards Conference May 18-20, 2015 Best Practices for Growing a Successful Program Citi Host: Archie Payne Client Presenter: Blake Stewart (Lafarge)

2 Table of Contents 1. How Citi can Assist with Program Growth 2. Results in Action Lafarge 1

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4 Objectives Realize Efficiencies from your Current Procure to Pay process Optimization of financial gains is there for the taking Ensuring your organizations are leveraging all of the payment options available at the supplier level Maximize working capital efficiencies Turning your Citi Working Capital Analytics Results into Actions Helping you derive the greatest benefits from spend analytics Enabling you to make data-driven decisions about working capital strategies Benefiting from Opportunities to Digitize your Payments Meeting the demands of today Aligning with the trends of tomorrow 3

5 Value of Data Analytics The Citi Working Capital Analytics analysis allows for data-driven decisions that will drive meaningful insights into your payments strategies and opportunities to digitize payments Identify areas where your Purchase Card program supports payment digitization efforts Greater P-card adoption equals: Fewer purchase orders and associated costs Additional Rebate dollars Fine-tune your working capital strategy Investigate whether other card types can fit into your program epayables solutions VCA (Web, API) Meeting and Event Cards Other B2B Card Solution Think about new payment products you may never have considered 4

6 Citi: How we Help Companies Optimize their Payments Solutions Citi provides in-depth analysis across all spend categories to give clients enhanced visibility and insight to help realize potential cost savings and greater efficiency across your Procure to Pay Process Citi merchant match analysis helps you identify card accepting suppliers, allowing them to implement the solutions most suited to your strategy and processes. Citi s analysis leverages a wealth of payment experience and expertise, global capabilities, and customer support. Citi s recommendations lead to strategic solutions that deliver increased visibility, security, and financial control, including: Actionable strategies to optimize and expand your Commercial Card program Strong visibility and insight to facilitate decisionmaking across multiple working capital solutions Targeted opportunities to unlock working capital and increase operational efficiencies within your organization 5

7 Citi Working Capital Analytics (CWCA) Optimize Payments Citi can mine your company s payables data to develop recommendations on how to improve your working capital and supply chain processes CWCA Value Proposition Analysis of your Accounts Payable file is used to diagnose your specific needs. and address them by packaging our best product offerings into a tailored solution. The Citi recommended solution provides a targeted campaign to improve cash conversion cycle and realize working capital benefits resulting in scalable financial savings and a more strategic working capital program. 6

8 Supplier Segmentation Example Supplier Finance Supplier Segmentation Current State Consumer Goods client Interested in optimization across payment spectrum Observations P-Card epayables Extensive opportunity across payment spectrum High spend variability amongst suppliers Recommendation Supplier Finance for high value direct spend P-Card/ epayables for lower value payments Value to Client DPO extension Increased rebates Transactional and financing savings 7

9 Rebate Maximization & Payment Digitization Example Process Improvement Spend Segmentation Spend Maximization Current State Services client Interested in payment digitization and rebate maximization Cardable Opportunity Observations Concentration of spend with minimal suppliers Majority of transactions have shorter terms Recommendation Process efficiency through electronification Rebate maximization via check to card conversion Value to Client Rebate maximization Transactional & financing savings 8

10 Rebate Maximization Example ACH Conversion Strategy Current State U.S. Industrials client Interested in additional financial benefits Observations Heavy electronic flow Large number of ACH suppliers accept cards Recommendation Expand existing commercial card program Convert ACH to card spend Value to Client Rebate maximization Float benefits Term extension 9

11 Implementing Virtual Cards

12 Implementing Virtual Cards - Approach 1 Project Definition and Approval (Using DMAIC principles), explaining the value proposition 3 Documenting the Current Process Gathering data, getting a clear picture of as-is processes 5 Implementation Development of process enhancements, testing end to end including payment by the Bank Extensive internal and external communication Official launch, execution by team, supplier onboarding Building the Team Joint effort amongst NABS, Purchasing, IT, Citi Analysis Identifying opportunities for improvement Determining extent of IT development required Identifying opportunities for process improvement Devising the optimum onboarding strategy, segmentation Review and Improve Regular Evaluation of progress and adjustments onboarding strategy Consider additional campaigns, modifications to vendors

13 Implementing Virtual Cards - Challenges Education Synchronizing Efforts Alignment of Objectives Analysis of the value proposition offered by Virtual Cards Proof of concept with current actual spend data, templates to calculate Working Capital improvement and additional rebate potential Simultaneous Planning Development with IT Planning with Citi Communicating with Internal Stakeholders and obtaining buy-in Internal Stakeholders report in different silos with different, sometimes competing goals and objectives Compliance with group initiatives Internal Stakeholders Finance a CFO in each of the 3 NA countries + VP North American Business Services (NABS) Purchasing decentralized management with team of commodity managers led by a Director in each country Treasury / Internal Control Business Units recent organizational change from product line to geographic Vendor Management Identifying the optimal target supplier group Selling the value proposition Highlighting the importance of supporting a key customer s strategic initiative

14 2015 Commercial Cards Conference May 18-20, 2015 IR S C ir c u la r 230 D is c lo s u r e : C itig r o u p In c. a n d its a ffilia te s do n o t p r o v id e ta x or le g a l a d v ic e. A n y d is c u s s io n of ta x m a tte r s in th e s e m a te r ia ls (i) is n o t in te n d e d or w r itte n to be u s e d, a n d c a n n o t be u s e d or r e lie d u p o n, by y o u fo r th e p u r p o s e of a v o id in g a n y ta x p e n a ltie s a n d (ii) m a y h a v e b e e n w r itte n in c o n n e c tio n w ith th e " p r o m o tio n or m a r k e tin g " of a n y tr a n s a c tio n c o n te m p la te d h e r e b y (" T r a n s a c tio n " ). A ccordingly, you should seek advice based on your particular circum stances from an independent tax advisor. A n y te rm s s e t fo rth h e re in a re in te n d e d fo r d is c u s s io n p u rp o s e s o n ly a n d a re s u b je c t to th e fin a l te rm s as s e t fo rth in s e p a ra te d e fin itiv e w ritte n a g re e m e n ts. T h is p re s e n ta tio n is n o t a c o m m itm e n t or firm o ffe r and d o e s n o t obligate us to e nter into such a com m itm ent, n or a re w e acting as a fiduciary to you. B y accep ting this p re sen ta tion, subject to ap plicable law o r regula tion, yo u a gree to keep con fiden tial the in fo rm ation con tained he rein and the existence of and proposed term s for any T ransaction. We a re re q u ire d to o b ta in, v e rify a n d re c o rd c e rta in in fo rm a tio n th a t id e n tifie s e a c h e n tity th a t e n te rs in to a fo rm a l b u s in e s s re la tio n s h ip w ith us. We w ill a s k fo r y o u r c o m p le te n a m e, s tre e t a d d re s s, a n d ta x p a y e r ID n u m b e r. W e m ay also request corporate form ation docum ents, or other form s of identification, to verify inform ation provided. [TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle] 2015 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world Citibank, N.A. London. Authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world