Raquel Alvarez Mateos is a Treasurer at Kearney, a privately held multinational consultant company. Linda Kondrat is an Assistant Treasurer at Littelfuse, a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world.

While the two work for companies in different industries, their ongoing treasury management system (TMS) implementations brought them together on AFP Collaborate, where they were able to share their challenges and successes. Below is a look at their respective TMS journeys and the lessons learned along the way.

Kearney’s Treasury Modernization

Kearney is currently undertaking a significant treasury modernization through the implementation of a TMS. “Our processes lacked visibility, efficiency and the ability to quickly retrieve data, making it evident that many of our challenges were inherent to the company,” said Alvarez Mateos. “Thus, we had no choice but to move forward with modernization.”

Kearney is a UK-registered company with its HQ in Chicago, IL. It operates in 45 different countries, with around 5,700 employees globally and 40+ banking relationships. Two years ago, their treasury department was primarily a back-office function, “but we had a clear vision of where we wanted to be,” said Alvarez Mateos.

Implementing a TMS was a daunting journey. It required collaboration with various departments spread across the company. Operating from the U.S. with a centralized treasury structure, with a lean team of four, including one based in London, began the vendor selection process.

“We ensured that every vendor had an equal opportunity to present their capabilities, with the selection process lasting about three months,” said Alvarez Mateos. By June 2023, they signed a contract and began implementation the following month.

They’re aiming for full implementation by March 2025 — an aggressive timeline. Despite the challenges of operating in numerous countries, their chosen vendor’s ability to structure the implementation in modules has allowed the team to stagger timelines and manage resources effectively.

As of July 2024, 29 banks have been integrated into the TMS, significantly improving their cash positioning capabilities. “Previously, we struggled with access to tier-two bank accounts, but now we can see previous-day cash positions within minutes,” said Alvarez Mateos. “Additionally, our TMS partner acts as a connector for all our banks, streamlining the implementation process without needing additional contracts or renewals with third parties.”

While this approach may not suit every company, it fits their needs. They’re also incorporating debt management and administration into the TMS, handling intercompany transactions, netting transactions and their loan portfolio. The system will process payments for cash management and corporate transactions, interfacing fully with the ERP system.

By early 2025, the team plans to manage all foreign exchange transactions through the TMS, ensuring daily accounting and reconciliation of bank accounts and eliminating current delays with tier-two bank accounts.

“This modernization journey has been transformative, positioning our treasury department to lead with greater efficiency and effectiveness,” said Alvarez Mateos.

TMS Implementation at Littelfuse

Littelfuse embarked on its TMS journey in 2021, beginning with an RFP process, during which they evaluated various providers through demos and examinations of R&D and product development investments. “We needed a scalable system that could grow with our company,” said Kondrat.

Littelfuse has a presence in over 20 countries and employs approximately 16,000 associates worldwide. The global treasury team of 10 was divided regionally to lead the implementation, focusing on both geographic regions and ERPs. They chose to connect to five of the eight ERPs that are run globally based on operating systems and functionality levels.

Their previous method of managing more than 45 banks and 400+ accounts globally on spreadsheets was inefficient and posed control challenges. “The TMS has provided better visibility and liquidity management,” said Kondrat. “Managing bank account access and signers in one place has significantly improved our internal control processes; we now have a common repository for support documents, making global bank account reviews more efficient.”

Cash forecasting, also previously managed on spreadsheets (by region), is now centralized, offering better global visibility. Additionally, the bank fee analysis module has revealed pricing inconsistencies with the same providers across different regions, leading to cost savings through better negotiating power.

As of July 2024, Littelfuse has fully implemented four of eight modules in its TMS. The remaining four are 50-60% complete, and the goal is to finish them by early Q2 2025.

“Overall, the TMS implementation has been a transformative journey, improving efficiency, visibility and control within our treasury operations,” said Kondrat.

Advice for Your TMS Implementation

Consider whether you need a consultant

Whether or not you need a consultant depends on your company’s structure and needs. “Do you need someone who is potentially going to be with you for a year or more?” said Alvarez Mateos. “Then you want someone who is either going to be part of your company or can be redeployed from some other area of your organization.”

In Kondrat’s case, engaging a consultant “was critical for our implementation journey, providing task management and regular updates,” she said.

If you choose to use a consultant, see if your network has recommendations. “We had our IT staff reach out to some of their contacts to get various names of consulting firms. Then they spoke with them to see who best fit our structure and our project,” said Kondrat.

Whether you work with in-house experts or outside consultants, Alvarez Mateos recommends making sure there they have an understanding of treasury. “They don't have to be a complete expert in every single treasury area, but definitely in the key areas that are important for your team to be successful,” she said.

Document your TMS implementation process

Documenting your process is essential for knowledge retention, as companies and teams evolve over time. Particularly in the beginning phases of implementation, it’s important to take your time to really understand how the functions work and what they do.

“During our blueprint phase, we went module by module, created flow charts of the processes, and identified the various touch points and who was doing what,” said Kondrat.

Littelfuse held many team meetings with its consulting firm for training. “We would write the as-is process, identify what we were doing, and identify the changes that would need to be made as it would function in the TMS,” said Kondrat. “Then we would have one or two training sessions and always a statement of work or a process workflow documented for the process after implementation.”

Ensure data integrity

One of the biggest revelations for the Littelfuse team was in financial accounting, where they identified variances in how teams calculated and recorded transactions. Managing both external debt and intercompany loans and investments, they realized the need for standardization. “Previously, different entities interpreted loan agreements and calculated interest expenses differently,” said Kondrat. “Through the TMS implementation, we've now standardized these calculations, ensuring consistency across the board.”

Upskill your team

As technology evolves, the skills that treasurers need to be successful are expanding as well. “Implementing a TMS involves redeploying staff resources, which provides a great opportunity for team members to develop new skills and experiences,” said Kondrat. “As various team members become subject-matter experts on specific modules, they train internal staff, fostering growth and adaptability within the team.”

Have conversations with your peers

Talking to others who have or are currently implementing a TMS can reveal solutions to problems you’re facing or challenges you should watch for.

“It's been really helpful to be able to talk to someone who's going through the implementation at the same time, maybe a little bit different company structure, but there are quite a few similarities,” said Kondrat. “Plus, some of the different challenges helped me look at things in a new way.”

Connect with Your Peers

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