Transforming Treasury into a Strategic Partner Through Data at SRF

India-headquartered chemical manufacturer SRF has been experiencing remarkable growth. This brought to light the need to embark on a comprehensive project to overhaul its Excel-based treasury system. Led by Head of Treasury, Sugandha Singhal, this initiative aimed to address data gaps, compliance challenges, and operational inefficiencies. Leveraging the Kyriba Treasury Management System (TMS), the project achieved transformative outcomes, surpassing expectations and marking a successful integration of technology into treasury operations. Notable achievements include standardizing accounting practices, reducing errors and time, and significantly decreasing people dependence.

The Challenges

• With SRF’s remarkable double-digit growth across five countries in recent years, the finance department recognized the inadequacy of their Excel-based treasury system.
• The existing data capture processes were non-standardized, particularly within subsidiaries, resulting in critical information gaps and data loss.
• Recognizing the evolving role of treasury from backend support to a front-end strategic thinker, the imperative was to transition the team from mere data compilation to advanced data analytics.

With these challenges in mind, in addition to the urgency to meet the expectations of tech-savvy stakeholders, the importance of mitigating reputational risks associated with manual monitoring of loan due dates and interest payments, and high dependence on personnel with elevated attrition rates; SRF embarked on a journey to revamp their treasury function. Overall, the project sought to standardize accounting practices across all locations, reduce errors, costs, and time, enhance compliance, and provide deeper insights into financial operations.

After evaluating the options available, Sugandha found that Kyriba best met SRF’s needs, delivering a comprehensive Treasury Management System (TMS) that would revolutionize their treasury function. Addressing people issues was paramount for the success of the project, with a strategic focus on garnering buy-in and training individuals for the new system and processes. Successful strategies to meet this challenge included co-evolving the vision with a cross-functional team, emphasizing a ‘We approach’ over ‘Me approach.’ Overall, a combination of collaborative consensus building and strategic initiatives proved instrumental in managing people-related challenges throughout the project.

Measurable Improvements

After successful implementation, the project’s outcomes have been transformative, marking a paradigm shift in data utilization and operational efficiency. Leveraging Kyriba, SRF has established a robust foundation for its treasury function, unlocking the value of previously uncaptured critical data. Notably, the standardization of accounting across all subsidiaries has been achieved, culminating in heightened accuracy, a secure audit trail, and agile analytics. This newfound agility translates into faster decision-making capabilities and the identification of arbitrage opportunities. A remarkable reduction in data entry and report-making time, from approximately 10 days to an impressive 2 days, showcases the project’s tangible impact on productivity. Perhaps most noteworthy is the significant reduction in people dependence, signaling a shift towards streamlined and automated processes. These outcomes collectively represent a successful integration of technology into treasury operations, resulting in cost savings, enhanced productivity, and the ability to meet deadlines more efficiently.

The project has not only delivered on the planned outcomes but has surpassed expectations, marking a successful transformation of SRF’s practices and processes. The consolidation process was notably streamlined, simplifying complex procedures and promoting a more cohesive approach. The audit process experienced a significant acceleration, facilitated by the system’s inherent structure and efficiency. The introduction of stronger controls emerged as a notable advantage, enhancing overall governance and risk management. The project’s success lies not only in meeting the planned outcomes but also in instigating a fundamental shift toward standardization, consolidation, and improved controls, reinforcing its impact on the organization’s operational efficiency and adherence to best practices.

Planning For The Future

In the wake of the successful implementation of automated treasury accounting and reporting, Sugandha and her team are poised to navigate the future with strategic advancements in 2024. The organization has identified key focus areas to propel its financial operations to the next level. First and foremost, there is a strategic emphasis on real-time monitoring of cross-border liquidity positions, signaling a commitment to heightened financial visibility and risk management. Additionally, SRF aims to implement automated cashflow projections, harnessing technology to enhance forecasting accuracy and streamline financial planning processes. The exploration and integration of artificial intelligence (AI) in various business and treasury processes represent another crucial avenue for development. This forward-looking approach aligns with the industry’s trajectory toward smart automation and data-driven decision-making. Furthermore, the organization aims to extend automation to accounts receivable and accounts payable processes, fostering efficiency and accuracy in financial transactions. With these initiatives, SRF envisions a dynamic and technologically advanced financial landscape, positioning itself at the forefront of innovation in the coming years.