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OpusCapita® Case Liquidity management at Moelven Maximum output with minimum input How can a company reduce drawdown and deposits in cash pools to a maximum of SEK and NOK 10 million by improving liquidity management? Anita Hagen at Moelven knows. Moelven is Norway's largest wood-processing group. Recently, the company noted that, from time to time, it had a significant amount of extra liquidity in its six cash pools, and long and short term credit facilities varied heavily. "Forecasting was difficult because information from the banking system and Treasury Management was gathered manually. In addition, the information in ERPs and AR/AP systems was not used in forecasts at all. Our goal was to move all of the information we were sitting on into active use," says Anita Hagen, Financial Manager, Risk and Treasury Operations at Moelven Industrier ASA. Integration with all ERP systems Moelven wanted to improve its liquidity control and the quality of its information, and needed a system providing daily updates on group liquidity. "In addition, our subsidiaries needed a system for cash flow forecasting," Anita Hagen explains. A higher level of automation was a prerequisite for maximising the quality of output. Increased automation also means minimising the manual input of economic or financial staff and thus reducing the margin of error. After due consideration and evaluation, Moelven Group opted for OpusCapita Liquidity Management. "The reason for choosing the OpusCapita Liquidity Management was that it could be integrated with all ERP systems in the Group, and subsidiaries are included in forecasts," says Anita Hagen. Automation under control Moelven Group consists of 44 subsidiaries with several types of system. In order to update the situation on a daily basis, OpusCapita fetches payable and receivable files from the ERP systems once a day, and from the TWIN Treasury Management System twice a day. In addition, OpusCapita fetches cash balances from the banks. Although much of the system is based on automation, the Group Treasury is aware of the ongoing processes. "Every morning, we are provided with a log of all file transfers and can see that transaction files have been successfully fetched. If there are failures, the technical staff is informed and they work out the problem," explains Hagen. The integration-based automation of processes saves a lot of time for subsidiaries. The only manual input subsidiaries need to perform includes monthly recurring payments, such as salaries and taxes, which is Problem: The company noted that it had a significant amount of extra liquidity in its six cash pools, and long and short term credit facilities varied heavily. Forecasting was difficult because information from the banking system and Treasury Management was gathered manually. In addition, the information in ERPs and AR/AP systems was not used in forecasts at all. Solution: The Moelven Group chose the OpusCapita Liquidity Management which could be integrated with all ERP systems in the Group, and subsidiaries are included in the forecasts. Pu b l i s h ed: OpusCapita Journal 2009. TEXT: Laura Ala info@opuscapita.com · www.opuscapita.com
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