Fonterra Brands awards regional cash management business to HSBC


04 May 2007

HSBC has been awarded the cash management business of Fonterra Brands Asia (Fonterra), a leading global manufacturer and marketer of dairy products based in New Zealand. The regional mandate spans nine countries in Asia and the Middle East where Fonterra sells its key brands.

The win follows a proactive consultancy review of over 12 months, during which HSBC was able to develop customised solutions tailored to meet Fonterra's current and future cash management requirements.

Richard Jaggard, Regional Head of Sales, Global Payments and Cash Management, Asia Pacific, HSBC said: "The quality of our consultancy review was considered a key determinant in the award of the mandate, and is further evidence of the success of our 'advisory approach' in understanding our clients' business and tailoring a solution that makes sense for them now and into the future."

As part of the integrated cash management solution tailored for Fonterra, HSBC will process the majority of payments and receivables through the company's Shared Service Centre (SSC) in Hamilton, New Zealand, significantly reducing the number of banks and system interfaces previously engaged by Fonterra.

HSBC's solution will consolidate accounts receivables information throughout the region into a single database to facilitate reconciliation at Fonterra's SSC. HSBC's cash management solutions will be delivered via the host-to-host platform, HSBC Connect, with full integration to Fonterra's chosen ERP. HSBC's global internet banking channel, HSBCnet, will also be engaged to perform ad hoc payments and provide a window into underlying transactions.

HSBC's integrated cash management solution will deliver benefits to Fonterra, including:

  • A standardised and centralised payment process across all transaction types throughout the region, saving time and eliminating errors
  • A single system interface into Fonterra's back-office treasury and accounting system, improving efficiency and reducing manual workload
  • Enhanced returns via a liquidity management solution delivered through a single banking partner with a presence in all of Fonterra's key markets
  • A single point of contact for all client management issues throughout the region, underwriting a consistent and committed servicing approach

Fonterra was looking for a banking partner for their payments and cash management function that had an in-depth understanding of their business, geographical reach and leadership in the cash management arena.

Implementation of the solution will be rolled out in phases, beginning with Malaysia, then progressively throughout the remainder of Asia-Pacific and the Middle East by the third quarter of 2007.

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