As a robust global business, DP World Caucedo’s treasury team faced considerable challenges when it came to actively reconciling the company’s numerous bank accounts across multiple countries and financial institutions. In addition, they recognized the need to improve visibility into accounts, as well as enhance their ability to maintain proper controls over transactions. The team understood the importance of finding a true global cash management partner who could bolster the company’s treasury and cash management structure, providing optimization, standardization and efficiency with the ultimate goal of supporting DP World Caucedo’s continuous growth.
The objectives established by DP World Caucedo treasury team included:
To address their cash and trade management challenges, DP World Caucedo’s treasury team turned to Citi. Citi implemented individual zero balance account (ZBA) cash pools to consolidate liquidity and increase returns. DP World Caucedo’s treasury team plans to, eventually, extend this solution regionally.
By offering a host-to-host solution, treasury was able to improve visibility into the company’s cash, automate pooling of funds, and reduce bank charges and transaction costs. At the same time, by utilizing Citi’s corporate card and management platform, they improved credit efficiency and internal controls. Employing Citi’s One Receivables solution has allowed DP World Caucedo to consolidate all operations in one view and reconcile every transaction.
“Citi’s host-to-host capabilities have enabled us to directly connect our ERP system to their state-of-theart cash management platform,” explained Eduardo Guerra, Finance Director for DP World Caucedo. “This has allowed us to consolidate all of our bank information in one place, eliminating the need to manage it bank by bank. We can now leverage Citi’s banking platform to manage investments, as well as reduce the burden of KYC requirements with multiple financial institutions. This solution has revolutionized the way that we manage our treasury function.”
Overall, the Citi solution has been a resounding success story for DP World Caucedo. Amongst the benefits of the ZBA cash pools has been enhanced yields and reduced costs.
The solution has also simplified treasury’s ability to execute transactions, while automating reconciliation for greater efficiency. As a result, DP World Caucedo is now better able to allocate capital in order to meet global trade objectives.
“Our partnership with Citi has been invaluable, not only for our business in the Dominican Republic, but around the world, because of its extensive global footprint,” concluded Guerra. “We see Citi as the perfect partner for us, our customers and our suppliers. There is no other bank in Latin America that has such a broad presence in so many different jurisdictions and offer the robust solutions we need to grow our business.”