Avery Dennison, a global leader in materials science and digital identification solutions, operates in over 50 countries with a workforce of approximately 35,000 employees. In 2023, the company reported net sales of $8.4 billion, supported by a diverse product portfolio that includes labeling materials, RFID inlays and tags, and software applications bridging the physical and digital worlds. Avery Dennison's commitment to enhancing branded packaging and sustainability is central to its mission.
A Tight Deadline and a Smooth Implementation Process
In late 2018, Avery Dennison faced an impending contract expiration with its existing technology vendor. This deadline presented an opportune moment to reevaluate their treasury management system through a rigorous RFP process. A key pain point had been the high cost associated with custom reporting and upgrades, and the company sought a SaaS solution that could offer flexibility and cost efficiency.
The Kyriba team demonstrated exceptional commitment during the RFP process by developing prototypes tailored to Avery Dennison's unique needs. This proactive approach instilled confidence, leading to the signing of a contract with Kyriba in March 2019. With a tight deadline looming, the project was divided into phases to ensure a seamless transition. In less than 4 months, phase one went live with the integration of Kyriba, banks, and Avery Dennison’s other financial data providers. This ambitious goal was accomplished thanks to meticulous planning, a smooth implementation process, and clear escalation procedures.
Collaborating to Develop Efficient Frontier Solutions
The Kyriba platform proved superior to the previous system and marked the beginning of a fruitful partnership, exemplified by the co-development of new functionality.
Before partnering with Kyriba, Avery Dennison engaged with its banking partners to explore cost-saving strategies for hedging forward points. The banks recommended an efficient frontier model based on value at risk (VaR), which allows investors to save on the forward points within an acceptable VaR threshold. Initially, Avery Dennison modeled this functionality themselves in Excel.
Recognizing the potential for automation, Avery Dennison collaborated with Kyriba to automate both the exposure collection process and VaR efficient frontier modeling. Kyriba developed this functionality at Avery Dennison's request, further solidifying the partnership and also identifying opportunities to extend these benefits to other clients.
Achieving Financial Excellence through Partnership
This partnership exemplifies the value of collaboration, as Drs. Ramón Tolk RA, Senior Director of Treasury at Avery Dennison, explains, “We are now generating over $1 million of savings annually. True partnership is like a marriage where you have to care for each other. It's about listening closely to the wishes and needs of your customers and providing or developing solutions for them like the example on the value at risk. At Avery Dennison, we’re very pleased with the partnership with Kyriba.”
Avery Dennison's journey with Kyriba stands as a testament to the power of collaboration, innovation, and shared vision. Together, they continue to push the boundaries of what's possible in treasury management, setting a new standard for success in the industry.
