Reassuring financial partners with reliable, up-to-date cash and debt management

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Reassuring financial partners with reliable, up-to-date cash and debt management

Interview with Christine BENETEAU, Cash Modeling user

About the company

France’s leading shoe wholesaler

The Royer Group specialises in the wholesale shoe trade. The market leader in France and one of the biggest actors in the European market, it’s home to 800 employees in 40 business units around the world, with sales revenue of 310 million euros in 2017.

The group distributes some 15 different brands under licence, including New Balance, Converse and Kaporal, along with its own brands like Aster, Mod8, Kickers, and Stephane Kélian and Charles Jourdan. Its products are mostly manufactured in Asia, except for its high-end women’s shoes.

Nearly one-quarter of its capital belongs to the Apax Altamir Amboise investment fund, so high-quality financial communication is a must.

The project and its background

Before deploying the CashSolve.net application, the Royer Group prepared its forecasts with an Excel model set up by a consulting firm. Since management is centralised at the group level across all 40 business units, the volume of information to be processed quickly turned out to be a limitation on the quality of the forecasts. In addition, the tedious process of updating the model prevented the group from updating its forecasts frequently

The CFO’s three biggest requirements for Cash Modeling

Christine Beneteau, CFO of the Royer Group, explains the challenges that needed to be addressed with the choice of a forecasting tool.

  • Meeting our financial partners’ requirements

We have to respond to increasingly insistent demands from our financial partners, especially the banks, who require increasingly reliable and up-to-date information. Annual forecasts are no longer enough; we need to update our forecasts more and more frequently and shift to “on-demand” updates. With CashSolve, we’re now able to do that.

  • Monitoring WCR variations

For us, it’s absolutely essential to have an analysis of our CFS’s. I monitor WCR variations very closely, because our monthly ranges are directly linked to purchases/sales/inventory. I’m looking for real autonomy in my analyses, and CashSolve gives me that option.

  • Managing the highly seasonal nature of our business

Our business is very seasonal in nature, and that requires precise management of strains on our cash flow linked to our purchasing campaigns. The richness of the analyses available in the CashSolve.net tool lets us make operational decisions based on forecast components, like delays or delivery reports. We’re now able to provide real cash flow management for the group.

Groupe The benefits of Cash Modeling as seen by the Group Treasurer

Bertrand Vanney, Group Treasurer, project leader and the main user of CashSolve.net, also shares his opinions on the benefits of working with CashSolve:

  • Comparing actual results to forecasts

With the previous model, we were able to produce a monthly forecast, but with no cross-referencing with a CFS or balance sheet forecast. Reviewing the balance sheet was a totally manual process, and required a very time-consuming data entry process that could sometimes be a source of error. With CashSolve, we plan to do quarterly updates with a reintegration of the actual balance sheet and updated budget with actual sales revenue and purchasing data.  We’ll be able to compare actual results to our forecasts, and easily generate new forecasts over the course of the accounting period.

  • Modelling factoring

We’ve introduced a type of financing that our previous tool wasn’t able to model: factoring. The positive point here is the ability to anticipate the financing from each factor and model its impact on the receipts portion. That allows us to calculate our net cash flow needs. 

  • Improving our cash flow rules

In the past, we thought in terms of each business division in order to simplify things. Now we really refine our modelling for each company, which is more accurate because the settlement periods differ from one subsidiary to the next. Once the configuration has been done at the start of the process, it’s really very helpful and easy to use. 

  • Integrating currency risk management

The previous model couldn’t handle currencies other than euros. Our exposure to different currencies is now managed through CashSolve, which is a huge and essential improvement compared to the old tool.

To conclude 

CashSolve? Compared to our Excel model, it’s like night and day. We can abstract away from the mechanics of the process to really focus our time on analysis and predicting future developments. Christine Beneteau, Group CFO

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