Faber-Castell optimises quality and up-to-date status of financial data – group-wide.

Faber Castell Case Study

Structure

  • 37 integrated subsidiaries

INTERFACES

  • SAP
    UC eBanking prime (MT940)

IMPLEMENTATION TIME

  • 6 months

About Faber-Castell

With a production volume of around 2.4 billion wooden pencils per year, Faber-Castell is today the world’s largest manufacturer of regular and coloured pencils. Faber-Castell maintains manufacturing sites in nine, sales offices in 23 and representative offices in over 120 countries. One of the oldest industrial, family-owned companies in the world, Faber-Castell’s approximately 8,000 employees generate annual revenues of around € 630 million. The Faber-Castell group, which operates globally on a CO2-neutral basis, includes the world’s largest coloured pencil factory, the subsidiary in São Carlos, Brazil, with an annual production volume of nearly two billion pencils.

Status quo and objectives

This internationally-operating, family-owned company was looking for a system with which it could decentrally capture not only account data and derivatives but also manage the currency-differentiated cash flow forecasting of its subsidiaries and then centrally analyse these in the form of clearly structured reports. The intention was also for these higher-quality data to be regularly accessible by the subsidiaries without leading to a significant increase in their workloads. For Group Treasury, not only the features of the new system but also a particularly user-friendly interface were decisive as the keys to ensuring the fastest possible acceptance of the new reporting policy.

TIP implementation

The first step involved Group Treasury defining which financial data would in future need to be reported by the subsidiaries. The system was then developed with all of the master and user data based on this scope. The defined objective is to in future capture all financial positions of the subsidiaries on a daily basis. At the end of every month, the subsidiaries confirm the accuracy and the completeness of the, mainly imported, data. In order to support the subsidiaries during the switch to the new reporting method, Group Treasury prepared a series of quick guides which can be accessed directly in the application. The TIP task list and email alert function regularly remind employees of their pending tasks. External data such as FX rates and electronic account statements are imported daily via interfaces to SAP and the electronic banking system UC eBanking prime. Compliance checks are also used by the subsidiaries to regularly confirm their compliance with the requirements set out in the finance policy.

Outputs

  • Implementation of the web-based treasury information platform for the decentralised reporting of all group data
  • Increasing the quality and ensuring the up-to-date status of reported data
  • Nine financial status reports and two for cash flow forecasting
  • An increase in acceptance due to guides integrated into the software as well as task lists and an email alert feature

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Faber-Castell Aktiengesellschaft Case Study

„Transparency in treasury is also a key factor at a traditional, family-run company. TIP is an excellent tool which meets the requirements of head office and also delivers benefits for decentralised entities.“

Nils Ostendorf,

Head of Corporate Treasury, Faber-Castell Aktiengesellschaft

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