Headquartered in Hong Kong, TPV Technology Limited (TPV) is the world’s leading manufacturer of display monitors and LCD TVs. The company develops, manufactures and markets some of the best-known TV and PC brands in the industry, including exclusive licenses for global distribution of Philips-branded monitors and TVs.
TPV has enjoyed strong global growth over the past two decades by leveraging its competencies in manufacturing, operational efficiency, and research and development. But as the firm expanded, TPV’s treasury team in Hong Kong faced the challenge of managing over 100 accounts across 40 entities globally.
In particular, TPV needed to overhaul its cash management processes in Europe, which were mostly manual. As it received payments in multiple currencies across 13 markets in the region, TPV encountered challenges related to:
Aside from addressing its challenges in Europe, TPV’s treasury in Hong Kong also wanted to gain greater visibility into its global cash operations and pool surplus cash at headquarters to maximize cash use
TPV partnered with J.P. Morgan for our extensive network and robust global clearing capabilities. By understanding TPV’s key requirements, J.P. Morgan implemented a bespoke Just-in-Time (JIT) Funding and Cross-Currency Sweeps (CCS) liquidity solution for TPV in Europe.
The innovative solution in Europe includes:
The cross-border CCS solution was also implemented in TPV’s Asia and U.S. operations. The structure facilitates the repatriation of surplus cash from regional accounts to the group’s account in Hong Kong on a monthly basis, allowing the treasury to pool balances and auto-sweep its operating balances between its bank and asset management accounts. The balances are further invested in J.P. Morgan’s money market funds to maximize yields.
J.P. Morgan’s Just-in-Time Funding and Cross-Currency Sweeps solution is a game-changer for us in Europe. It helped us rationalize our bank accounts, increased visibility of our surplus cash and automated our payment funding processes to deliver tremendous treasury efficiencies.
Since implementing the solution, TPV has streamlined its account structure to achieve a 30 percent reduction in bank accounts globally. By further centralizing balances across its Europe operations into a single Euro account, TPV has been able to achieve full visibility and control of its cash positions and optimize the use of surplus cash.
The solution has generated significant cost savings for TPV in Europe by:
By eliminating highly-manual processes, the firm’s treasury can now allocate resources towards value-added activities to better support the needs of the business.
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