Case Studies Award Winning Cash Forecasting Best Practice: Kellogg’s and TIS

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	Award Winning Cash Forecasting Best Practice: Kellogg’s and TIS

Award Winning Cash Forecasting Best Practice: Kellogg’s and TIS

Technology Category	Platform as a Service (PaaS) - Connectivity Platforms Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Food & Beverage
Applicable Functions	Business Operation Procurement
Services	Cloud Planning, Design & Implementation Services System Integration
Challenge	Kellogg’s treasury aimed to significantly improve its cash visibility, forecasting efficiency, and accuracy. The existing process was time-consuming, involving extensive work in Excel and downloads from multiple systems. Additionally, they sought to gain insights into working capital drivers to streamline order-to-cash and procure-to-pay processes. Another objective was to use FX transaction data at the invoice level to develop a daily currency hedging position, with a long-term goal of creating an 18-month rolling hedge program. Read More
About Customer	The Kellogg Company, commonly known as Kellogg’s, is a multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg’s produces a variety of cereals, snacks, and convenience foods that are marketed in over 180 countries. The company operates 172 global entities with 733 bank accounts, five main cash management banks, and deals in 40 different currencies. With net sales amounting to €14.18 billion, Kellogg’s is a significant player in the global food industry. Read More
Solution	Kellogg’s implemented TIS as their main forecasting and working capital solution. This cloud-based platform enabled them to eliminate the time-consuming tasks associated with Excel and multiple system downloads. The solution provided real-time insights into working capital drivers, allowing for smoother order-to-cash and procure-to-pay processes. Additionally, the platform facilitated the use of FX transaction data at the invoice level, enabling the development of a daily currency hedging position and the long-term goal of an 18-month rolling hedge program. By automating routine processes, Kellogg’s treasury could focus on delivering valuable business insights, evolving from a risk management focus to one that enables growth. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Food & Beverage

Applicable Functions

Business Operation

Procurement

Services

Cloud Planning, Design & Implementation Services

System Integration

Challenge

Kellogg’s treasury aimed to significantly improve its cash visibility, forecasting efficiency, and accuracy. The existing process was time-consuming, involving extensive work in Excel and downloads from multiple systems. Additionally, they sought to gain insights into working capital drivers to streamline order-to-cash and procure-to-pay processes. Another objective was to use FX transaction data at the invoice level to develop a daily currency hedging position, with a long-term goal of creating an 18-month rolling hedge program.

About Customer

The Kellogg Company, commonly known as Kellogg’s, is a multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg’s produces a variety of cereals, snacks, and convenience foods that are marketed in over 180 countries. The company operates 172 global entities with 733 bank accounts, five main cash management banks, and deals in 40 different currencies. With net sales amounting to €14.18 billion, Kellogg’s is a significant player in the global food industry.

Solution

Kellogg’s implemented TIS as their main forecasting and working capital solution. This cloud-based platform enabled them to eliminate the time-consuming tasks associated with Excel and multiple system downloads. The solution provided real-time insights into working capital drivers, allowing for smoother order-to-cash and procure-to-pay processes. Additionally, the platform facilitated the use of FX transaction data at the invoice level, enabling the development of a daily currency hedging position and the long-term goal of an 18-month rolling hedge program. By automating routine processes, Kellogg’s treasury could focus on delivering valuable business insights, evolving from a risk management focus to one that enables growth.

Impact #1	Kellogg’s achieved a $6 million cash flow benefit from aligning European supplier DPOs and $4 million in the US.
Impact #2	The company now makes better use of cash, enhancing its credit rating.
Impact #3	The solution revealed smaller FX exposures that can now be aggregated and hedged, reducing risk.

Impact #1

Kellogg’s achieved a $6 million cash flow benefit from aligning European supplier DPOs and $4 million in the US.

Impact #2

The company now makes better use of cash, enhancing its credit rating.

Impact #3

The solution revealed smaller FX exposures that can now be aggregated and hedged, reducing risk.

Benefit #1	$6 million cash flow benefit in Europe.
Benefit #2	$4 million cash flow benefit in the US.

Benefit #1

$6 million cash flow benefit in Europe.

Benefit #2

$4 million cash flow benefit in the US.

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Overview

Award Winning Cash Forecasting Best Practice: Kellogg’s and TIS

Operational Impact

Quantitative Benefit