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Azzana is a consulting company specialised in Corporate Treasury and Transaction Banking.
20 Rue Belliard, BRUSSELS
France : +33 (0) 1 44 65 33 84
Belgium : +32 (0) 2 673 64 30
Singapour : +33 (0) 1 44 65 33 84
Mail : info@azzana.net
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Centralisation of liquidity

Centralisation of liquidity

Objectives of the project

Our client is a major player in the fashion industry. As a company with many subsidiaries in many countries, they were missing a group wide visibility and control over the cash balances. So they were looking for a way improve this situation, with the ambition to secure the cash positions, minimise counterparty risk, optimise short-term investments and reduce the need for borrowing.

Context

Our client is active in the ‘Ready-to-wear’ fashion business, and has more than 1000 stores in 50 countries. Half of their 1 billion EUR turnover is generated by international activities.

Our role

Azzana has setup a detailed reporting of the cash flows, account balances and banking fees in the 18 countries where our client has subsidiaries.
After clarifying the AS-IS situation, we have defined the possible target scenarios, based on different strategies and risk exposures, and calculated the return on investment for each.
Azzana has fully analysed the banking relationships of our client, and has advised on the best way forward.
Our consultants were involved in the end-to-end project scope and have provided assistance during the implementation of the chosen scenario. We were in charge of the communication with the subsidiaries, provided trainings and advised on the change management aspect.

Results & Added value

This project was realised within an eight months timeframe. During that short period, we have succeeded to halve the number of bank accounts and realised financial savings of more than 300.000 EUR due to a reduction of bank loans and the optimisation of investment conditions.
Our client is now able to centralise and secure their liquidities, and controls all counterparties at group level.