Al exander Ham i l t on Let t er of Cr edi t Paym ent - - PowerPoint PPT Presentation
Al exander Ham i l t on Let t er of Cr edi t Paym ent M odul e A P M Tr easur y Goes Gr een and Saves Lynda M cGoey M anager of Tr ade and Pr oj ect Fi nance Oct ober 28, 2008 / 1 W el com e
/ 1 W el com e t
Lynda M cGoey M anager
Tr ade and Pr
ect Fi nance Oct
28, 2008
/ 2 W el com e t
3 /
4 /
at i
Fi nanci al Ser vi ces
ci al Fi nance
gy Fi nanci al Ser vi ces
M oney
easur y
gy
l & Gas
er & Pr
Technol
es
5 /
.
e
l m
nt er nat i
w or k
t s & Ol ym pi cs
at i
n t er p r i se Sol ut i
t h ca r e
anspor t at i
i ances
ght i ng
ndust r i al
/ 6 W el com e t
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busi ness s i t es, 20 banks, 1000 act i ve i nst r u m e n t s, 3, 500 annual paym ent s, por t f
i
8B, w eekl y paym ent cycl e, 2 f ul l
i m e em pl
busi nes s s i t es, 30 banks, 3300 act i ve i nst r u m e n t s, 9, 200 annual paym ent s, por t f
i
quar t er l y paym ent cycl e, 2 f ul l
i m e em pl
How can we ensur e? Fee accur acy, accur at e paym ent s, cor r ect char ge back t
he busi ness, cont r
l er shi p, det ai l ed i nf
m at i
each t r a n sa c t i
f
al l , paym ent cycl e t
pl y wi t h com pany’ s 90 st andar d Al l whi l e bei ng a good cor por at e envi r
m e n t al ci t i z en Answer : APM
paym ent m odul e
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Paym ent cycl e:
aut
at i ng i nvoi ces dai l y, caus i ng conf us i
keep up wi t h t he l ar ge vol um e
i nvoi ces , paym ent s wer e m ade w eekl y For ei gn exchange r a t es:
act i ve L/ Cs and guar ant i es i s s ued i n 39 di f f er ent c u r r e n ci es
banks ut i l i z i ng t hei r
n var i
i nt er nal FX r a t es
a gi ven day, banks aut
at i ng i nvoi ces dai l y
M anual pr
m ul t i pl e r a t es, conf usi
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dent i f y al t er nat i ve t
paym ent t hr
account s payabl e – W or k wi t h GE cash m anagem ent t eam t
i nk t
cash, set t i ng up t r u st ed s
ce s t at us f
aut
at i c appr
paym ent s
pr e- det er m i ned bank m odel s . – W or k wi t h i nt er nal bi l l i ng t eam ( I BS) – I ncr eas e cont r
l er shi p pr
s ar
f ee paym ent s – Ext end paym ent cycl e f r
7 t
days – I ns ur e bi l l back t
i nes s com pl et ed bef
e l edger cl
i ng each quar t er
W or k wi t h i nt er nal and ext er nal cust
er s f
best r e so l ve
10 /
ai ned f r
banks and bus i nes ses – Det ai l s r e q u i r e d f
eas e
r e c
c i l i at i
– How t
de com pl et e r e p
t i ng, r e a l t i m e – Expl
ed bi l l i ng
i
/ s
ut i
wi t h s har ed s er vi ces – How t
ge bus i nes ses t hr
i nt er nal bi l l i ng s ys t em ( I BS) i f we adopt web cash t
vendor paym ent s – Bui l d an I BS l i nk t
he t
t
i dat e i nt er nal char ge codes at t he t i m e
L/ C i s s uance r e q u e s t , gr eat l y r e d u c i ng i n c
r e c t l edger char ges
W or k w i t h i nt er nal and ext er nal cust
er s f
best r eso l ve
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get s m et and exceeded by APM — GE’ s bol t
t
– El i m i nat ed m anual i nvoi ce dat a i nput – Zer
i nvoi ces , z er
, z er
t age – Adm i ni s t r a t i ve f ee s avi ngs f
t he banks and t he busi ness es – El i m i nat ed r e w
k i nvol ved i n i n c
r e c t
l ack
paym ent r e s
ut i
– Sys t em cal cul at es al l f ees
f
bank’ s bi d r e p l y i n ALOC – El i m i nat es f ee di s cr epanci es / di s put es
r
m e n t –t he 3 Rs – Reduce, r e u s e , r e c y c l e – Zer
i nvoi ces , z er
, z er
t age – 1 t r e e = 8, 300 pi eces
paper – APM s avi ng
6. 65
t r ees annual l y!
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Banker s:
On APM –“ JP M or gan i s ver y pl eas ed w i t h Gener al El ect r i c’ s APM s ys t em –a com pl et e account s payabl e s ys t em . The syst em i s ver y r e l i abl e and accur at e i n pr
s i ng f ees i n a t i m el y f as hi
r e l at ed t
he st andby l et t er s
cr edi t and bank guar ant ees i ss ued by JP M or gan. Si nce t he i nt r
u ct i
APM s ys t em , JP M
gan' s need t
eat ei nvoi ces, m ai l i ng cost , t el ephone f
l
up, and di s put e r e so l ut i
have been t
al l y el i m i nat ed and
i nvoi ce D PO s have r educed by at l eas t 30 days . W hen t he paym ent i s r e ce i ved by t he bank, i t pr
des f ul l br eak dow n
char ges , and how t he f ees w er e cal cul at ed. JP M or gan i s ver y pl eas ed w i t h t he APM s ys t em , and w oul d l i ke t
end s peci al t hanks t
M cG
M anager Tr ade and Pr
ect Fi nance and D ee Dobl er
ai n, Seni
Anal yst at GE Cor por at e Tr eas ur y f
i nnovat i ve t hi nki ng, and br i ngi ng t hi s syst em i nt
e a l i t y
m agi nat i
at w or k. Saadat H. Khan JP M or gan Execut i ve Di r e ct
Gl
Tr ade Ser vi ces Gener al El ect r i c’ sAPM s ys t em el i m i nat es t he s t andby l et t er
cr edi t bi l l i ng pr
s f r
a bank’ s per s pect i ve. W hen a bi d i s pl aced i n ALOC, t he bi d i ncor por at es t he f ees as s
at ed w i t h t he i s s uance
t he s t andby l et t er
cr edi t . Once a bank i s not i f i ed t hat t hey w on t he bi d, t he s t andby L/ C i s i s s ued. On a quar t er l y basi s , t he f ees as s
at ed w i t h t he i s s uance
st andby l et t er s
cr edi tar e r e m i t t ed t
he bank. The APM pr
s i m pl em ent ed by Gener al El ect r i c el i m i nat es banks cost s as s
at ed w i t h st andby l et t er
cr edi t bi l l i ng. Taki ng w hat w as
a ver y paper i nt ens i ve pr
s , and m aki ng i t com pl et el y w eb- based i s as envi r
m e n t al l y f r i endl y as i t i s cos t r educi ng. I f
l
at t he num ber
banks ar
t he w or l d w ho s er vi ce Gener al El ect r i c t hr
t he ALOC syst em , t he cos t s avi ngs and t he el i m i nat i
paper , t he num ber s m us t be s t agger i ng. An envi r
m e n t al l y f r i endl y pr
s , w hi ch r e d u ce s cos t s , now t hat ’ s i m agi nat i
at w or k! John M M cAr t hur Vi ce Pr esi dent , Tr ade & Suppl y Chai n | HSBC BANK USA, N. A.
Quot es f r
busi ness user s and banker s
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