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Case Study: Thailand Fast Moving Consumer Goods Company

  • Article

Establishing a domestic THB cash concentration structure to enable easier and more efficient liquidity management practices

Client Challenge

  • The company is a global producer of fast moving consumer goods. They offer a wide array of food, home, and personal products across a number of notable brand lines.
  • In Thailand, the company’s liquidity management processes were characterised by heavy usage of manual efforts to move and manage funds as part of intercompany lending practices. Overall cash balances in Thailand were also manually calculated by the company, which took a significant amount of time and effort to do.
  • The company’s balances were also scattered across accounts, which resulted in lower-tier interest rates were applied to their THB balances as tier thresholds were not met.

Transformation & Success

  • HSBC put together a domestic THB cash concentration structure in order to help the company meet business demands. The cash concentration structure automatically swept funds from participating accounts to a header account held with HSBC Thailand. HSBC provided an enhanced interest rate for funds swept to this header account, allowing the company to enjoy higher interest yields from their THB liquidity.
  • The cash concentration structure automated the movement of funds according to instructions that the company set in the Global Liquidity Solutions (GLS) self-servicing tool on HSBC’s Liquidity Management Portal (LMP), which is accessible via HSBCnet.
  • The solution significantly reduced the manual effort that was spent on calculating account balances and returns on intercompany lending interest. This is estimated to have saved the company 48 hours a year.
  • Access to LMP via HSBCnet Mobile now grants the company’s staff more freedom and flexibility in where and when they are able to view, manage, or amend liquidity positions.

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