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Award Winning Cash Forecasting Best Practice: Kellogg’s and TIS
Technology Category
- Platform as a Service (PaaS) - Connectivity Platforms
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Food & Beverage
Applicable Functions
- Business Operation
- Procurement
Services
- Cloud Planning, Design & Implementation Services
- System Integration
The Challenge
Kellogg’s treasury aimed to significantly improve its cash visibility, forecasting efficiency, and accuracy. The existing process was time-consuming, involving extensive work in Excel and downloads from multiple systems. Additionally, they sought to gain insights into working capital drivers to streamline order-to-cash and procure-to-pay processes. Another objective was to use FX transaction data at the invoice level to develop a daily currency hedging position, with a long-term goal of creating an 18-month rolling hedge program.
About The Customer
The Kellogg Company, commonly known as Kellogg’s, is a multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg’s produces a variety of cereals, snacks, and convenience foods that are marketed in over 180 countries. The company operates 172 global entities with 733 bank accounts, five main cash management banks, and deals in 40 different currencies. With net sales amounting to €14.18 billion, Kellogg’s is a significant player in the global food industry.
The Solution
Kellogg’s implemented TIS as their main forecasting and working capital solution. This cloud-based platform enabled them to eliminate the time-consuming tasks associated with Excel and multiple system downloads. The solution provided real-time insights into working capital drivers, allowing for smoother order-to-cash and procure-to-pay processes. Additionally, the platform facilitated the use of FX transaction data at the invoice level, enabling the development of a daily currency hedging position and the long-term goal of an 18-month rolling hedge program. By automating routine processes, Kellogg’s treasury could focus on delivering valuable business insights, evolving from a risk management focus to one that enables growth.
Operational Impact
Quantitative Benefit
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