From the November 2010 issue of Treasury & Risk magazine

Silver AHA Winner in Cash Management

Multilateral Net Benefits: Honeywell International

A long history of acquisitions has made $31 billion Honeywell International a conglomerate with businesses that operate independently in more than 100 countries and in a wide variety of currencies. These legal entities do a lot of buying from and selling to each other, allowing corporate treasury to adopt a multilateral netting solution that led to an 89% reduction in funds transfers, an 80% drop in settlement costs and a silver award. "We were wasting millions of dollars by having those businesses use gross settlement," says Panji Winanteya Ruky, senior regional treasury manager.

The reduction in foreign exchange trades brought significant savings to Honeywell. It now channels over 3,500 invoices a month with a value greater than $700 million through the netting center, with 80% of intercompany invoices now netted and settled through the center. Honeywell treasury estimates that the project has freed up more than 20 employees from intercompany settlement tasks. What used to take an accounting team four days to reconcile can now be done in just two.


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