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De Heus Indonesia Enjoys HSBC’s Award-winning Comprehensive Solutions in Cash Management
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SBC’s Global Payments Solutions (GPS) once again received international recognition as one of its clients, De Heus Indonesia obtained The Asset Triple A Treasurise Client Awards 2023 for Best Payments and Collections Solutions.
When deciding the award winners, The Asset, a Hong Kong-based magazine, conducts its reviews based on a stringent methodology, combined with a rigorous approach for selecting the best institutions and solutions.
De Heus is a Netherlands-based producer of high-quality animal feed for farmers, integrators, and dealers. One of the company’s key missions is ensuring access to safe and healthy food to sustain the world’s growing population.
In 2018, the company began its operations in Indonesia. De Heus’ latest investment comes in the form of an animal feed factory located in Pasuruan, East Java, its fourth plant in the country. Located on a five-hectare plot, the factory has an annual capacity of 300,000 tons, combining modern technology and environmentally sustainable practices.
De Heus Indonesia operates under multiple entities and was at that time looking for a single bank that can support their end-to-end banking needs. The company has thousands of customers consisting of small and large farmers, dealers, and distributors, which payment is made using various channels with unstructured information. This created difficulties to manage and reconcile transactions.
To ease the burdens of reconciliation, HSBC’s Virtual Account solution uses the customer mobile numbers as the account identifier, while actual payment is still aggregated into the company’s operating account. An added attribute, HSBC Virtual Account number can receive the payment from any bank in Indonesia and any channel using real-time payment rail, bank transfer, ATM, or cash deposit. HSBC also managed cheque collection by providing the Post-Dated Cheque (PDC) warehousing solution, in which these cheques will be deposited to customer account by the due dates.
Each month, De Heus performs thousands of payment transactions to its vendors, each of which required review and approval from regional and global treasury teams. De Heus required a bank that can offer a digital platform to address this requirement.
HSBC’s digital platform, named HSBCNet, enables De Heus to centralize all its accounts in Indonesia. Through this platform, the company can set up parameters and tiering system for approvals of payments, enabling swift turnaround in submission-to-payment processes, while still maintaining existing procedures as established by the parent entity. The payment instructions can then be uploaded to HSBCnet using a file upload function to speed up the payment submission.
In term of liquidity management, to optimize cash flow, De Heus has an existing intercompany loan agreement that was established to self-fund the group’s working capital. Nevertheless, intercompany balance movements among entities are also complex as it involves various banks and accounts, creating difficulties in reporting and calculations, particularly as they were being done manually.
HSBC’s Global Liquidity Solutions (GLS) brings a real-time liquidity solution with automated balance movement, interest returns, and tax calculations. GLS offered real-time regional and global views, and significantly reduced manual effort spent on balance movement between accounts and entities, calculating account balance, returns on intercompany lending interest, and taxes. The auto-sweep feature brings in savings of more than USD 100,000 each year through automated overdraft settlements.
“The end-to-end solutions from HSBC helped us streamline payment and collection processes, streamline reconciliation and automate intercompany transactions—which altogether brought about significant time and cost savings,” said Margaretha Yeni Lestari, Treasury Manager at De Heus Indonesia.
HSBC understands how automation in cash management becomes a game-changer, helping companies to stay on top of the fast-paced business environment while having the comfort of mind of having their feet firmly planted in the ground for sustainable growth. Through improved efficiency in cash flow management, the company can reduce the cost of doing business and, at the same time, help managers in having a more accurate picture that is useful in budget forecasting.
As a global bank, with a long history and deep-rooted presence in Indonesia, HSBC continues to strive for excellence to enable clients to optimize their business processes. The Triple A Awards recognizes these efforts and bring a positive loop for the bank to better serve Indonesian companies.
HSBC opened its first branch in Indonesia back in 1884, under The Hongkong and Shanghai Banking Corporation Limited. Since then, HSBC has always been presented to help businesses manage their cash balances across more than 50 markets globally. (ism)
