Alstom is a global leader in power generation and transport infrastructure, setting new standards for innovative and environmentally friendly technologies. Alstom builds the fastest train as well as the automated metro with the highest passenger capacity worldwide. In addition, they deliver integrated turnkey solutions for power generation, equipment and services for a variety of energy sources such as water, nuclear power, gas, coal and wind. The group employs around 80,000 people in 70 countries, and in 2007/08 had orders worth € 23.5 billion.
The high volatility of FX markets and large fluctuations in interest rates have created massive challenges for FX management. To be in a position to meet these challenges proactively, Alstom initialized a project to optimize their FX hedging processes.
The goal of the optimization was, on the one hand, an increase in the transparency of FX management and, on the other hand, an optimization of the underlying processes. Specifically, a new reporting cockpit based on SAP NetWeaver BW was installed. This includes not only retrospective hedge effectiveness reporting, but also prospective reporting for planning and controlling purposes. In addition, operative processes were optimized through the targeted deployment of workflows. In doing so, it was, of course, essential to comply with international accounting regulations (IAS 39).
ESPRiT supported Alstom in this project from the analysis to the implementation. The first step was to analyze the value flows and processes. On the basis of this analysis, an optimization concept was drawn up and the IT adaptations were defined. To ensure greater reliability in a complex environment, the requirements were implemented and tested in a prototype. Once the solution had received approval, the IT adaptations were implemented, staff training was carried out, and support was provided for the go-live.
Today Alstom has at its disposal improved transparency and optimized processes in FX management. The reporting system facilitates better planning, hedging and reporting for FX effects. The workflow processes take the pressure off treasury staff and lead to better process quality, whilst at the same time saving time.