SKF saves money on money
For groups of companies with extensive internal invoicing, it may be worthwhile using a netting process, which is a method of offsetting receivables and payables that frees up capital and reduces currency risks. In collaboration with SKF, OpusCapita has just succeeded in creating a new, modern solution with an emphasis on flexibility and user-friendliness.
"We have been working with netting for over 10 years, and demand is steadily increasing," reports Robert Wennerström, Sales Manager at OpusCapita Sweden. "Together with SKF, we have now developed a web-based solution. A state-of-the-art product in my opinion."
He believes that the key to success has been a good requirements specification combined with an open dialogue. But it is always better to hear it straight from the horse's mouth.
A well-rounded business concept
A giant ball flashes outside the headquarters of the SKF group. It is part of a ball bearing – a concept the world considers as Swedish as Nobel, Volvo and ABBA. SKF was founded over a hundred years ago and quickly developed into a global operation. Today it is represented in more than 130 countries and is renowned for its competence and high-tech products.
In 2006, however, at SKF's Treasury Centre, it was discovered that its proprietary netting system needed a new technical platform.
"We were using an old-fashioned technology and only a few people knew how to maintain and develop the system. There was also a need to make it more user-friendly. For these reasons, we started to look for a new netting system," explains Lars Hallgren, Finance Manager at SKF Treasury Centre.
SKF's Treasury Centre is the group's internal bank and it handles borrowing and lending, as well as currency and interest rate risks. There are 20 staff in Gothenburg and, due to the amount of business in Asia, there are also seven Treasury employees in Singapore.
The best of both worlds
Lars Hallgren describes how they quickly arrived at the decision not to develop a new proprietary system.
"We were looking for a standard product which we could influence, having our wishes taken into account. Some of the potential suppliers were unwilling to customise their standard system, so it was clear to us that OpusCapita was a good option."
"The first impression of OpusCapita was that their system seemed to satisfy many of our requirements," continues Karin Wahlgren, the project manager responsible at SKF Treasury Centre. "They understood our business and from the word go it felt good that there was a desire to solve any problems that might arise."
“A small project group facilitated communication and, even in the initial discussions, we discovered how important it is to agree on the names of the different parts of the process.”
"There was some confusion to start with, as we used different words to describe the same things and vice versa," says Karin Wahlgren.
Central control
SKF's basic requirements were the starting point for the project. The most important of these was that the netting system also had to be connected to their internal invoicing system, as SKF processes all payments centrally. SKF also wanted the exchange rate to be tied to the invoice until it is paid. A requirement which, among others, OpusCapita was able to satisfy.
In total, around 35-40 thousand invoices flow through SKF's netting system every month.
"SKF's policy is to centralise financial transactions. Our invoicing and netting system provides group companies with just one counterparty and positions in their own currencies, which means they can avoid buying and selling currencies. We are eliminating thousands of payments, while at the same time achieving better control over the group's currency position," says Lars Hallgren.
Thanks to central invoicing, almost 80 per cent of currency exposures are avoided.
Simple user logic
The new system is a web-based solution, which provides easy access for everyone. Both Lars Hallgren and Karin Wahlgren are impressed by OpusCapita's commitment.
"We have been able to influence a lot of things. They came here and filmed to see how we work and they examined the keystrokes our users made, so that they could come up with suggestions as to how this could be made more efficient and intuitive. They really wanted to understand all our processes."
OpusCapita then constructed the pages in the same way, so that users can learn the logic and understand the next step.
"From the very beginning, things were right – and neat too. I found it interesting how OpusCapita focused on the user instead of the programming details, which meant that there was a high acceptance level internally from the start. The changes have been very well received," explains Karin Wahlgren.
Better without computer paper
Since the turn of the year, over 100 units within SKF have been using the new system, with a total of almost 300 users. There were a few people at each company who needed training for this and the user-friendly interface enabled SKF to avoid hefty training costs.
"Thanks to e-learning and video conferencing, all users were quickly able to learn the new system," says Lars Hallgren, "and we didn’t need to take the training out on the road."
The user-friendliness of the system is something that both Lars Hallgren and Karin Wahlgren return to. As well as the fact that greater flexibility means that problems can be solved earlier in the month.
"OpusCapita has been very accommodating. Their willingness to listen is one of the reasons our collaboration has been so successful. We can now manage our reports in a new way and attune them to our working methods. Before, you had to sit there with a pile of computer paper in your lap. It has quite simply made life better for those of us who work with finances," they happily confirm.
