It was about time. Last year $5.8 billion Eastman Chemical Co. dumped its obsolescing installed XRT software, licensed in 1995 and last updated in 2008, in favor of software as a service (SaaS). The new solution, Treasura, let treasury move all of its global cash management to one highly accessible platform that would accommodate multiple currencies instead of just U.S. dollars, as the XRT system did, reports Shane Mann, manager of global cash management. “We needed a platform to standardize and centralize all processes across all regions,” he says. “The move to an up-to-date SaaS system made us more efficient and allows us to back each other up across all regions.”
The choice of Treasura was not only dictated by functionality but economics. “They were the right fit for our middle-market size,” Mann says. “A lot of the others would have been overkill for us. They had great features, but they were too expensive and too complex to implement. Treasura offered what we needed at an attractive price.”
The change makes Eastman more efficient and more effective, Ryder says. Because hedging activity is automatic instead of manual, “we save more than a few hours—probably a day or two” a month, he estimates. “And that savings comes at the close of the month, when time is particularly valuable.
“The system is programmed to calculate prospective and retrospective hedge effectiveness in all the ways that the rules allow,” he says. “There is more integrity in the math output than we had before. With a lot of hands touching a lot of spreadsheets, we had more room for errors.”