Fully automated FX hedging for a high-volume parts business
Automated hedging solution deployed in four months
A leading construction and mining equipment supplier in Southern Africa extended its fully automated SAP micro-hedging from equipment to its parts business.
Parts hedging fully automated on the existing SAP platform
100%
Automation of FX hedge cover layering to purchase order exposures
4 months
To deploy the new automated solution
1.5+ days
Reduction in month-end close
The challenge
Having set a standard for automated hedging of equipment, the client wanted the same for parts, where a lengthy manual bucket hedging approach was consuming treasury time.
- Two separate SAP ECC instances for treasury and exposures
- Hedge management dependent on spreadsheets, manual SAP extracts and a complex calculation
- Reliance on a single person for a mission-critical, C-level visible process
- A solution that had to withstand future ERP consolidation or upgrades
The solution
SkySparc proposed a QlikSense solution built on the client's existing Teradata warehouse and extraction layer.
- FX hedges, market data and parts purchase orders extracted from two SAP ECC environments
- A systems-agnostic data model in Teradata, protecting against future ERP changes
- An automated Parts Hedging Cockpit in QlikSense layering FX cover against exposures
- QlikSense infrastructure set up in Azure
- Reporting on hedge reserves and gains and losses
- Automated end-to-end testing using TestRail
The result
FX hedge cover is now fully automated against purchase order exposures, removing two FTE of manual effort.
- 100% automation of FX hedge cover layering to purchase order exposures
- Deployed in four months
- More than 1.5 working days removed from month-end close
- Outperformance on hedge reserves and gains and losses compared with previous outcomes
- New analytical views for the CFO