A Leading Technology Company
Building better cash and liquidity solutions
A technology leader that works closely with utility, industry, transport and infrastructure customers in roughly 100 countries, this company’s large-scale operations are dedicated to the manufacturing and distribution of equipment for the generation, transmission and distribution of energy. It is also a supplier of process automation systems and industrial robotics used in the food and beverage, automotive, consumer goods and other sectors.
At a Glance
- J.P. Morgan has played an indispensable role as the company’s core bank for over 25 years in the U.S. In Mexico, the company had a long-term relationship with a large global retail bank with presence in the country, along with other local banks
- In 2013, the company issued a request for proposal (RFP) for cash management services, aiming to improve treasury operations in Mexico. J.P. Morgan won the RFP offering with an integrated cash management solution to cover the company’s main treasury needs
- A key point of the mandate was the technical leverage found in both J.P. Morgan’s cash management solutions and the coverage service model
As the technology giant grew in Mexico, its activities in the region were embedded within various business units. This often led to duplicative efforts and inefficiencies. The company required an adequate treasury structure that both enhanced its local and cross-border cash management and provided best-in-class service. The company also wanted to reduce manual processes, and automate its payments and reconciliation processes.
The J.P. Morgan Solution
- Using EDIFACT, a global file format, J.P. Morgan implemented a treasury operational host-to-host model via J.P. Morgan Host-to-Host which offered a wide range of automated payment and reporting services. This scalable, cost-effective solution provided the company with a comprehensive cash management solution
- J.P. Morgan’s payment solution includes: local wires and ACH payments, international wire payments, checks and local U.S. dollar wires
- The liquidity model includes MXN and USD accounts based in Mexico and in the U.S., as well as a EUR account based in London. Some of these accounts use an overdraft line to facilitate their disbursement operation
- The collection solution includes an umbrella of receivables services to streamline reconciliation processes. The product suite includes: Receivables EDGE, Virtual Reference and over-the-counter payments (cash and checks)
Luis de la Serna, Mexico Treasury Services Coverage
- By changing its cash management structure and using leading-edge technology solutions, the company shifted from a traditional treasury services structure with high cost and manual processes to a new automated solution, improving efficiency, yields, risk management and customer relationships
- The company gained control of its end-to-end regional liquidity positions and core cash (payments and collections) centrally
- Centralized and automated payments, as well as reconciliation processes reduced the company’s days sales outstanding (DSO) and increased efficiency gains
- Full visibility is provided through real-time balance reporting and consolidated billing information via the global billing group through J.P. Morgan Access® OnlineSM
J.P. Morgan provides detailed information such as tax identification number and the ordering party to the customer enhancing its processes including automation of reconciliation and straight-through processing of payments, to increase operational efficiency.
This webpage was prepared exclusively for the internal use of the J.P. Morgan client to whom it is addressed (including the client’s affiliates, the “Company”). This webpage is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan.
This webpage is confidential and proprietary to J.P. Morgan and is not intended to be legally binding. J.P. Morgan makes no representations as to the legal, regulatory, tax or accounting implications of the matters referred to in this presentation. The products and services described in this webpage are ordered by Banco J.P.Morgan, S.A., Institución de Banca Múltiple, J.P.Morgan Grupo Financiero and/or its affiliates, subject to applicable laws, regulations and service terms.
J.P. Morgan is a marketing name for the Treasury Services businesses of JPMorgan Chase Bank, N.A. and its affiliates worldwide.
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