Funding Stories with a strong Business Connection

| 30-06-2016 | Pieter de Kiewit |

Already over a decade the treasury community agrees that the modern treasurer does not act out of an ivory tower. Still, a lot of the treasury stories about funding, I hear in treasury recruitment, are about technical details. I learn in detail about USPP’s, interest hedging strategies and convertible bonds. Between these technical stories I notice other ones. I think they are inspiring and would like to share two of them.

The Dutch market for retailers is extremely tough. Last February I learned what sets one of the more successful ones apart from the rest. In a tight cooperation between procurement, merchandising, supply chain management and finance a business concept was designed in which each store is able to renew its full collection every two weeks. This attracts customers constantly and increases revenues. Suppliers are paid after the customer in the store bought! Can you imagine what impact this has on the working capital situation! This of course only works when all functions are delivering. And they are. Treasury now has to think about what to do with excess cash….

At the Corporate Finance Summit one of the keynote speakers described the success story of AB Inbev, a company that dominates the global beer market. What strikes me in this story is the aspect the long term vision of the family that owns the company. They are not afraid to go all in, because they know their choice is the proper one. After acquisitions focus is on reducing debt, bringing the balance sheet back to a conservative state. We have recently seen companies with a different focus, as well as the consequences. I enjoyed his presentation.
Read his story under this link (in Dutch).

 

 

Pieter de Kiewit
Owner Treasurer Search