TTS: The Consumer Sector & Role of Treasury

Fast moving consumer goods: Staying one step ahead 5 The role of treasury has changed significantly over the past decade. A treasurer is now an active partner in commercial decision making and acts as an advisor across the organisation. The drive by FMCG company boards to meet KPIs and head off the threat from activist investors and disruptive entrants will shift more power to treasury. Treasury takes a holistic view of the organisation and has an overview of the company’s cash flows, which positions treasurers well to initiate discussions and to explore solutions to improve working capital and to increase efficiency. Solutions that target working capital, SG&A and COGS reductions, and operational efficiencies are not only relevant and appropriate given the new operational objectives of FMCG companies, they are the core mechanisms that will allow a company to achieve higher total shareholder returns. These solutions will ultimately provide the funds that will support capex, promote innovation, facilitate acquisitions of disruptors, enable share buybacks or increase dividends. The effective use of data is critical to these solutions. All banks have vast quantities of client data but not all have invested to develop the technology to interpret and analyse client data – and combine it with external information – in order to find the most appropriate solutions to help a client achieve its goals. The greatest benefit of big data analysis is that it eliminates guess work. Citi can help. We can show you a precise cost/benefit analysis for any solution, providing you with the evidence to enable your treasury to build a clear business case that will win support and help to transform your organisation. Summary