Hewlett-Packard Achieves New Efficiencies with Consolidated Payment Processes in Asia

Overview

Hewlett-Packard Company (HP), the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. Operating in more than 170 countries with a significant presence in the Asia Pacific region, including Japan, HP employs more than 320,000 people worldwide. Because the company enjoys such a broad presence throughout the world, streamlining and unifying their global operations are paramount to continued success.

Challenge

With revenues reaching above US $100 billion, HP was seeking a way to centralize its payment transaction processing across various regions and countries. In particular, the Asia Pacific region had experienced tremendous business growth so HP decided to accelerate its focus on standardization and alignment of processes in this region. Because this large-scale migration of payments processing across the Asia Pacfic was the first of its kind, HP had much to consider in terms of geography (i.e., culture, infrastructure support, maintenance of local relationships), global standards, multiple processing centers and banking relationships. Additionally, they set an aggressive timeline for its rollout.

The project was mandated, and the first phase needed to be in place in approximately 8 months. to coincide with the beginning of HP’s fiscal year. The time frame was aggressive, yet meeting this deadline would allow for a smooth transformation of banking activities from multiple local banking partners to a single bank with a single host-to-host connection and the shifting of HP’s payments back office to its Shared Services Centres (SSCs) in Bangalore, India and Dalian, China. It came as no surprise that the task to standardize payment processes proved daunting due to a range of regulatory requirements and language differences as well as varying degrees of technological sophistication, which generally lags behind its counterparts in the United States and Western Europe. With J.P. Morgan's Host-to-Host global payment platform solution, HP was able to realize its goal of implementing a global infrastructure to consolidate and standardize payment processing throughout the Asia Pacific Region.

Solution

Understanding the importance of this initiative, J.P. Morgan dedicated a team of experienced cash management practitioners to work closely with HP to map out their existing processes and develop future best practices. Together with HP’s regional Treasury, Business Integration and Global business-to-business teams, J.P. Morgan ensured that the solution implemented would remain best-of-breed and could be replicated with low or no additional integration efforts to other countries.

To ensure HP’s goal to standardize regional office systems and processes with the head office, J.P. Morgan recommended Host-to-Host, its global payment platform solution, to support HP’s regional payments needs. The Host-to-Host platform is able to accept mixed payment files (encompassing the full range of global payment instruments) in industry-standard file formats or proprietary formats from integrated ERP systems, such as SAP. Linked to J.P. Morgan’s processing hubs and platforms in all regions and countries, the Host-to-Host offering provides a consistent and centralized conduit into J.P. Morgan’s back offices around the world. With flexibility for implementation, it includes built-in plug-and-play capability to add additional countries and regions as needed. What’s more, J.P. Morgan’s Host-to-Host products are based on international standards, fit local and regional processing needs, and offer advanced security and contingency options.

Results

Despite the tight time frame, the project was completed and went live on the targeted date. HP successfully standardized their regional office systems and processes with the main office, using technology to improve productivity and payables efficiencies across the Asia Pacific region. HP achieved a higher degree of straight-through processing for all payment activities mandated.

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