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Accelerating Treasury Success at Chassis Brakes International Chassis Brakes International is an example of the growing number of mid-cap corporations that have successfully introduced SWIFT's cloud-based solution Alliance Lite2 for bank connectivity. We find out more.

Accelerating Treasury Success at Chassis Brakes International

Accelerating Treasury Success at Chassis Brakes International 

Chassis Brakes International is an example of the growing number of mid-cap corporations that have successfully introduced SWIFT’s cloud-based solution Alliance Lite2 for bank connectivity. This is increasingly provided as an integral element of sophisticated, cost-effective treasury management systems (TMS) such as Exalog’s Allmybanks, as Chassis Brakes International’s experiences demonstrate.

Treasury organisation

Treasury at Chassis Brakes International was not well-established until three or four years ago with a decentralised approach to cash management. As a private equity-owned business, however, managing group liquidity and unlocking cash flow was a major priority, which led to a project to centralise and optimise cash and treasury management. At the same time, Chassis Brakes International reviewed and rationalised its banking partners to increase operational efficiency whilst ensuring appropriate coverage and risk management across all markets.

Hélène Brunou
Hélène Brunou

Implementing a TMS to underpin the group treasury function was essential. Following a detailed evaluation process, Chassis Brakes International selected Exalog’s Allmybanks solution. As SWIFT Alliance Lite2 is integrated within Allmybanks, it provides a turnkey solution for cash management and bank connectivity. Hélène Brunou, Group Treasury Director at Chassis Brakes International, who also managed the project explains,

“We were already familiar with SWIFT based on experiences with previous organisations, and we recognised that it was the best way to communicate with multiple banking partners in a consistent way.”

The combined Allmybanks and SWIFT Alliance Lite2 solution enabled Chassis Brakes International to connect directly to its banks via SWIFT, using both FIN and FileAct, without the need to implement a SWIFT gateway or appoint a service bureau, therefore saving costs and resources.
 

Project progress 

Chassis Brakes International took a phased approach to implementation, and rolled out Allmybanks with SWIFT to each entity in turn. As the group treasury function is small, a key user is appointed in each region to provide expertise and support in each time zone, who then liaises with group treasury as required. In 2014, the solution was implemented in Europe; 2015 - United States, Brazil, South Africa and Australia; 2016 – China; India and Thailand and in 2017, Mexico. Therefore, all the Group’s entities are now live on Allmybanks and SWIFT, with the exception of a small entity in Japan that will implement the solution once it has completed its ERP rollout which will enable the delivery of XML files. 

Chassis Brakes International now has 113 users actively engaging with Allmybanks and SWIFT across 20 entities, sending around 5,000 payments a month and reporting on 56 bank accounts. Chassis Brakes International has appointed one international bank per country and in certain cases, one local bank to cover payments such as salaries and local taxes that international banks are not always in a position to process. Hélène Brunou notes, 

“When selecting partner banks, support for SWIFT for corporates was a key selection criterion. In virtually all cases therefore, we were able to connect to our banks via SWIFT, with one or two exceptions, where our local banking partners do not yet support SWIFT corporate access. Furthermore, we can support the vast majority of payment types, except for a few local payment types in a limited number of countries.”

Project outcomes

Chassis Brakes International now has comprehensive visibility of cash across the business, and collects MT940 (end of day balance and transaction reporting) and MT942 (intraday balance and transaction reporting) information from each bank. Payment processes have now been automated from end to end: payments initiated in the Group’s ERP, payroll and expense systems are converted into XML when necessary, transmitted automatically into Allmybanks and disseminated to the relevant banks (see box 1).

 

Box 1. Chassis Brakes International’s treasury solution in brief

 

Receive, view and export account statements

  • Automatic and manual treasury reconciliation
  • Intraday bank accounts (MT942)

Handle payments and collections 

  • Internal validation
  • Payment status reporting
  • History of remittances sent and transactions received
  • Visibility over payment instructions transmitted
  • Database of beneficiary settlement instructions
  • Pre-defined payment templates

Manage operational treasury

  • Forecast balances, consolidated by value date, entity etc.
  • Management of intercompany activities (e.g., loans, investments, current accounts)
  • Risk management (via a link to Finance Active)
  • Borrowing and investment (term loans & deposits)

Define rights and signing authorities for users

  • Rights per perimeter
  • 4 eyes principle

Set up banking communication via SWIFT

  • SWIFT profiles

 

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