In 2010, Debra Hinds, Director, Global Cash Management, Bombardier, was given just one year to streamline, i.e. centralize, their decentralize global cash management in 24 countries. The key was creating a universal banking document that was simple enough to work in virtually every country where Bombardier operates. Along the way, extraneous bank accounts were eliminated, and treasury gained greater visibility into Bombardier's cash position.
Previously, every local legacy document featured an array of:
- specific terms and conditions
- local jurisdiction and legal opinions
- cost of legal review by internal counsel plus local counsel advisors
- local bank systems often required
- tax advisory by internal and external advisors
- additional treasury manpower to assist legal and tax
- documentation updates to previously negotiated submissions.
New universal banking agreement
A new central agreement was developed in partnership with Deutsche Bank. It is covered under UK law and eliminates most laws of individual countries and requirements of local external counsel for reviews. Some of the improvements in the streamlined documentation included: only two to three items now require a signature—and without additional legal review, new country additions have been simplified, and legal input only is required on new country exception items. Currently, Bombardier are collaborating with Deutsche Bank in additional fine-tuning to the documentation process.
Having a single universal banking agreement was clearly vital in being able to streamline and centralise their global cash management in just one year.
Read more in the full article, here.