HSBC wins Fonterra Brands cash mandate

HSBC has won the cash management business of Fonterra Brands Asia, a leading global manufacturer and marketer of dairy products based in New Zealand.

The regional mandate covers nine countries in Asia and the Middle East where Fonterra sells its main brands, the bank says.

The win is a new mandate, and was awarded following a 12-month consultancy review, exclusive to HSBC, of Fonterra’s current and future cash management requirements.

As part of the integrated cash management solution prepared for Fonterra, HSBC will process the majority of the payments and receivables through the company’s shared service centre (SSC) in Hamilton, New Zealand. This will significantly reduce the number of banks and systems interfaces previously engaged by Fonterra.

The new arrangements will enable the consolidation of accounts receivables information throughout the region into a single database to facilitate reconciliation at Fonterra’s SSC. HSBC’s cash management solution will be delivered via the host-to-host platform, HSBC Connect, with full integration to Fonterra’s chosen electronic resource planning (ERP) system. HSBC’s global internet banking channel, HSBCnet, will also be engaged to perform ad hoc payments and provide a window into underlying transactions, the bank said in a statement.

According to HSBC the integrated cash management arrangements will deliver significant benefits to Fonterra, including: a standardised and centralised payment process across all transaction types throughout the region, saving time and eliminating errors; a single system interface into Fonterra’s back-office treasury and accounting system, improving efficiency and reducing manual workload, enhanced returns via liquidity management solution delivered through a single banking partner with a presence in all of Fonterra’s key markets; and a single point of contact for all client management issues throughout the region, underwriting a consistent and committed servicing approach.

Implementation of the new arrangements will be rolled out in phases beginning in Malaysia, then progressively throughout the remainder of the Asia-Pacific and the Middle East by the end of the third quarter of 2007.