TOMATO CATCH-UP: Newsletter Issue 152 – September 2012

A monthly resource on working capital, process optimization and issues relating to the world of corporate treasurers from Tomato's team of bankers and IT specialists

 

Introduction:

This month’s newsletter features several pieces on working capital and cash management since this is an area where our clients have huge improvement opportunities. Studies illustrate that many companies face similar challenges and a REL whitepaper offers strategies for improvement. In addition, we point to recent Twitter postings, Euro issues, the Swiss Treasury Summit on Sept. 6 where Martin Schneider will participate in a workshop; and GTNews’ technology and risk blogs. Not least, we introduce the new opportunity of doing business in Chinese Renminbi, which features a link to a checklist and more detailed information on our website!

Enjoy the variety!

Regula Spottl

 

In Today's Issue:

TOMATO UPDATES

FINANCE, BANKING AND IT

CAREER AND MANAGEMENT

 

20th Anniversary: Hinter die Kulissen des Flughafens Zürich

Am 28. August gingen wir nach einem Apéro bei Tomato hinter die Kulissen des Flughafens Zürich, um die Abfertigung durch Swissport zu bestaunen. Herr Stähli führte uns in den Untergrund. Eine unglaublich interessante Erfahrung für alle!

Vielen Dank an alle Teilnehmer, insbesondere dem Fotografen Holger Kappes!

Die Bilder auf der Webpage geben einen Eindruck von dem, was hinter den Kulissen abläuft!

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Martin Schneider am Swiss Treasury Summit, 6.9.12

Das jährliche Treffen der Treasury Spezialisten/-innen in der Schweiz findet am 6. September 2012 von 8:45 – 16:45 Uhr in Zug statt.

Anbieter: Hochschule Luzern – Wirtschaft, Institut für Finanzdienstleistungen Zug IFZ

Vom 14:00-15:00 Uhr wird Martin Schneider mit zwei weiteren bekannten Personen aus der Treasury Welt zu möglichen Optimierungen in Treasury Operations von Group Treasury zu Konzerngesellschaften und Bank IT Systemen mit Zahlungsverkehr und Liquiditätsplanung Stellung nehmen.

(Details inkl. Anmeldung...)

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Recent Twitter Postings

We are posting news we come across on Twitter almost daily. Here is a sampling of the most recent ones:

  • Case Study: How GE Receives and Warehouses E-statement Information across Multiple Banks. GTNews
  • Case Study: Microsoft Takes its Liquidity Structure to a Whole New Level. GTNews
  • Treasurers want to keep earnings level over time, says global survey. One of their biggest concerns? Counterparty risk. CFO.com
  • How to Hire Extraordinary Employees: 7 Rules to define the talents and skills you need and get them in the door. Inc.
  • Lizenzmanagement in Zeiten von Cloud und BYOD. Software gibts - passende Lizenzen? Die wichtigsten Grundregeln. Computerworld.ch

Complete list of Tweets! Follow us and we’ll return the favor!

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Doing Business in Chinese Renminbi

By Timo Sturn and Martin Schneider.

After having expanded the cross-border settlement program for Mainland Designated Enterprises (MDE) (companies licensed to settle exports in RMB) nation-wide in August 2011, on March 2, 2012, Chinese regulators announced jointly "The notice of improving the administration of MDEs in RMB cross-border trade settlement", meaning that all companies that are licensed to export and import, are now permitted to settle merchandise exports in RMB.

After having the Chinese import/export companies RMB cross-border settlement ready, the second big regulatory move took place in June/July 2012 to provide an easier cross-border transaction workflow: The "Simplified RMB cross-border payment scheme (SRCS)" was introduced for some pilot companies under specific conditions.

You find the list of conditions and additional information on our website.

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Survey on Why Multi-Nationals in Switzerland Centralize Their Business Models

Switzerland is a favored location among companies that are setting up tax-optimized centralized business models. To find out what issues multi-nationals headquartered in Switzerland face, PwC conducted a survey that involved 70 companies. The goal of the survey was to find out what these companies learned from setting up and running regional HQs.

Key topics in the report include “the rationale for centralisation, the models selected, location selection criteria, challenges faced when establishing and running Swiss HQs, and threats and future trends.”

(Survey…) pdf 40 pages

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Video Explaining Credit Default Swap

Martin came across a video by the Think Tank Work and Wealth for All. The lesson “Untangling Credit Default Swap” explains Credit Default Swaps in a way that makes it easy to understand.

(Video…) 10:47 minutes

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Huge Working Capital Opportunities in Europe

Based on an analysis of 925 companies across Europe, better management of receivables, payables, and inventory could result in improved working capital by as much as 12% of company sales.

REL, part of the Miami-based Hackett Group, conducted the analysis and found that “top-performing companies have about half the working capital of typical companies, collect from customers 16 days faster, pay suppliers 16 days slower, and hold about half the inventory.”

The CFO.com article “Big Working Capital Opportunity Seen in Europe” explains the potential upside of these numbers, the opportunities, and specific sector outcomes. (Full story…)

Related article in CFO-Insight.com: Finance directors eye sustainable working capital management: In Working Capital, a Look Past Year-End.

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Analysis of Cash Tied Up in Working Capital

A detailed analysis of all working capital areas reveals where exactly cash is tied up. Based on this analysis, CFOs can plan and implement the release of cash in order to improve working capital management.

The whitepaper Discovering the cash tied up in your working capital by REL Consultancy explains and illustrates various strategies to analyze working capital.

(Full story…)

Feel free to invite Martin Schneider for a meeting in workshop and brainstorming style. A round-table discussion could also include your company’s head of sales or head of procurement.

Our record is astounding! Clients’ cost for projects including other consulting and maybe software has in a typical working environment a payback time of just a few months.

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Research Report on Cash Culture

CFOs know the importance of good cash flow management and they work hard to challenge lax cash-management habits. However, they know how hard it is to create a “cash culture – a set of ingrained practices of efficient and effective cash management that saves the company money during good times but prepares it to survive the worst,” according to the Cash Culture study, conducted by REL Consultancy.

The article Blueprint for a Cash Culture outlines the result of the study and explains what it takes to establish a cash culture.

(Full story...)

The study was conducted in 2009 but we at Tomato consider the changes valid for many years. They are certainly pertinent now.

Again, feel free to invite Martin Schneider for a discussion to discover opportunities for cash optimization throughout your organization.

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GTNews’ Risk and Technology Blogs

In Hedging and Speculation: Two Sides of the Same Coin? Kevin Lester, contributing editor for gtnews, explains the difference between hedging and speculation and emphasizes how important it is to understand the need for rules and practices.

(Blog…) Subscription required, free 

In The Risks of Treasury Technology in the Cloud, Kelvin Walton, also a contributing editor for gtnews, explains lessons that can be learnt from the recent cloud computing crash in the Eastern United States when severe storms hit the region. He also suggests ways to best handle external IT service provision partners.

(Blog…) Subscription required, free

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Euro-Austritt: Erwägungen und Veranstaltungshinweis

Die Gefahr des Austritts eines Landes aus der Euro-Zone ist in der Presse und findet Leser und Zuhörer. Das Risiko ist je nach Informationen mehr oder weniger akut. Financial Risk Management Teams und Systeme in Corporates sollten sich so oder so der Risiken bewusst werden.

Berichte und Hinweis auf ein Treffen raten, was für Strategien dazu helfen:

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Do’s and Don’ts to Master Next-Gen IT

Business IT is evolving and your job as CIO is to assert IT’s role. In the CIO.com article Survival Guide: Do's and Don'ts for Next-Gen IT, Dan Tynan of InfoWorld lists and elaborates on a set of things to do and not to do. These include:

  • Take a long hard look in the mirror but don't jump in before you're ready.
  • Automate your infrastructure but don’t get stuck changing light bulbs.
  • Solve business problems but don't try to be an IT hero.
  • Build a catalog of services but don't forget about people, policies, and processes.
  • Become a data specialist. Don't be a server hugger.
  • Retool, retrain, and restaff as necessary but don't expect it all to happen overnight.

(Full story with excellent examples…)

Deutsche Übersetzung in cio.de: “Trotz BYOD und Cloud: 6 Tipps, wie die IT sich unverzichtbar macht”

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From the Desk of Regula Spottl, Greensboro, North Carolina

My Favorite App: Zite – A Personalized Magazine

In general, I’m very reluctant to add Apps for my iPad or iPhone. However, from among the apps I have on my iPad, Zite is my favorite. I downloaded it based on an article of must-have apps in the New York Times Tech newsletter. Zite is free and has no ads.

When I initially set it up, I selected the topics that interest me. They include architecture, art and culture, fashion, health and fitness, philosophy, psychology, London, Los Angeles, New York, Paris, sustainability, and a few more. 

Each time I open Zite, it refreshes its content. When I read something I like, I mark it so I get more of that. And when I like a news source, I mark it too. As result, my Zite magazine is like no one else’s.It's one magazine I read daily.

Your Tomato

Regula Spottl