Optimising cash allocation and FX decisions at Unilever

Unilever is one of the world’s largest producers of consumer goods.  

• The company’s products are used by 3.4 billion people every day 
• They are experiencing swift growth across key markets, such as the US, India, and China
• Unilever operates in more than 190 countries and markets more than 400 brands

Unilever’s cash forecasting process was manually intensive and offered limited insight.

• The group’s Treasury Management System produced an end-of-day feed with data drawn from various time zones.
• Unilever was unable to make swift decisions in areas such as funding and hedging.

The potential for short-term working capital improvements was limited due to a lack of real-time information.

HSBC delivered an automated process that provides greater future and intra-day cash-balance visibility.

• An application programming interface (API) integrates directly with Unilever’s cash-flow forecasting platform.
• Real-time information is now available for Unilever’s 290+ accounts across Asia and Europe.

HSBC’s API solution allows Unilever’s Treasury Management Team to be better informed when they release timely credit limits to key business partners. This hastens the delivery of goods and enables the just-in-time management of its distribution chain.“

With HSBC’s account information API, Unilever became one of the first global consumer-goods companies to embrace real-time data exchange and better visualise their transactions.

• Enriched real-time account information is strengthening cash flow forecasts and working capital management for Unilever, irrespective of jurisdiction or time zone.
• Costs have been trimmed, and there is a reduced risk of overdraft charges.

“Real-time data is fundamental for treasurers. It allows them to plan, react swiftly to their ever-changing cash needs, and erase time zones and borders. While we focus on innovative outcomes, we have not forgotten the importance of simplicity when integrating with our clients’ systems. At HSBC, we develop processes that ensure our solutions work seamlessly.” 

Yvonne Yiu, Co-Head Asia Pacific, Global Payments Solutions, HSBC