Flevy Management Insights Case Study

Treasury Optimization for Maritime Shipping Leader in Global Trade

     Mark Bridges    |    Treasury


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Treasury to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization in global maritime shipping faced challenges in Treasury operations due to volatile trade and currency fluctuations, affecting financial stability and cash flow. By implementing a Risk Management framework and new Treasury Management Systems, the company improved operational efficiency and financial metrics, highlighting the role of tech integration and stakeholder engagement in successful Business Transformation.

Reading time: 8 minutes

Consider this scenario: The organization in focus operates within the global maritime shipping industry and faces significant challenges in its Treasury operations.

With the volatility of international trade and fluctuating currency exchange rates, the company's financial position and cash flow predictability have become increasingly precarious. As a result, they are seeking ways to enhance their Treasury's efficiency and resilience, in order to safeguard assets and ensure liquidity for ongoing operations and strategic investments.



Given the volatility in global trade and currency markets, it is hypothesized that the maritime shipping company's Treasury challenges may stem from inadequate risk management strategies and outdated financial technology infrastructure. Another hypothesis could be that there is a lack of integration between the company's operational data and financial planning, leading to suboptimal cash flow forecasting and working capital management.

Strategic Analysis and Execution Methodology

The strategic analysis and execution methodology consists of a proven multi-phase process that brings clarity and efficiency to Treasury operations, ensuring that the organization can navigate the complex dynamics of global finance. Following this established process, as practiced by leading consulting firms, will help the company achieve a more robust and agile Treasury.

  1. Diagnostic Review: Begin with an in-depth analysis of the current Treasury structure, policies, and processes. Key questions include: How does the Treasury align with the organization's strategic objectives? What are the existing risk management practices? This phase involves benchmarking against industry standards and identifying gaps in technology utilization.
  2. Risk Assessment & Strategy Development: Evaluate financial risks, including currency, interest rate, and commodity price exposures. This phase focuses on developing a comprehensive risk management strategy, which includes identifying appropriate hedging techniques and establishing risk tolerance levels.
  3. Technology & Process Optimization: Assess the current financial technology stack and identify opportunities for process automation. Key activities include selecting and implementing Treasury Management Systems (TMS) and integrating with enterprise resource planning (ERP) systems for real-time data analytics and reporting.
  4. Working Capital Improvement: Analyze cash flow cycles and working capital efficiency. Potential insights revolve around optimizing inventory, receivables, and payables to free up cash and reduce financing costs. Common challenges include cross-departmental coordination and data accuracy.
  5. Change Management & Training: Implement new processes and systems while ensuring that staff are trained and aligned with the new Treasury framework. Interim deliverables include training materials and change management plans to support a smooth transition.

For effective implementation, take a look at these Treasury best practices:

Treasury Management (137-slide PowerPoint deck)
Treasury Analysis Worksheet (Excel workbook)
Treasury Management - Implementation Toolkit (Excel workbook and supporting ZIP)
View additional Treasury best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Treasury Implementation Challenges & Considerations

Executives may question the adaptability of the proposed methodology to the unique dynamics of the maritime industry. In response, customizing the risk assessment and mitigation strategies to account for industry-specific volatilities is a key consideration. Additionally, the methodology emphasizes the importance of scalability and flexibility in technology solutions to accommodate future growth and changes in the regulatory landscape.

Upon successful implementation, the company should expect improved financial stability and risk-adjusted returns. Enhanced forecasting accuracy should lead to a reduction in liquidity buffers, thereby increasing capital efficiency. Additionally, a streamlined Treasury operation can result in cost savings through reduced transaction fees and optimized banking relationships.

Implementation challenges may include resistance to change from staff accustomed to legacy systems and processes. Another potential hurdle is the integration complexity between new Treasury Management Systems and existing ERP platforms, which requires careful planning and execution.

Treasury KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets managed.
     – Peter Drucker

  • Cash Conversion Cycle (CCC): measures the efficiency of the company's working capital management.
  • Hedge Effectiveness: evaluates the success of hedging strategies in mitigating financial risks.
  • Cost of Capital: assesses the impact of Treasury optimization on the organization's overall financing costs.
  • Operational Cost Savings: tracks reductions in Treasury-related operational expenditures.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation process, it became evident that fostering a culture of continuous improvement within the Treasury team is crucial. By encouraging proactive risk management and staying abreast of technological advancements, the organization can maintain a competitive edge. A 2019 Gartner study found that companies with agile financial operations were 1.5 times more likely to report above-industry average growth.

Another insight is the importance of integrating Treasury operations with strategic decision-making. By aligning financial planning with business goals, the company can optimize its investment portfolio and enhance shareholder value. This strategic alignment is a cornerstone of Treasury best practices within the Fortune 500.

Treasury Deliverables

  • Risk Management Framework (PDF)
  • Treasury Optimization Plan (PowerPoint)
  • Technology Implementation Roadmap (Excel)
  • Liquidity Forecast Model (Excel)
  • Change Management Guidelines (MS Word)

Explore more Treasury deliverables

Treasury Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Treasury. These resources below were developed by management consulting firms and Treasury subject matter experts.

Alignment of Treasury Operations with Strategic Goals

Effective Treasury management is not an isolated function; it must be fully integrated with the organization's strategic objectives. A McKinsey report highlights that companies which align their Treasury operations with their strategic goals can achieve a more robust and flexible financial position. The Treasury should support corporate strategy by providing insights for decision-making, securing financing at optimal costs, and managing risks that could impact the company's strategic initiatives.

To achieve this alignment, it is essential to establish clear communication channels between the Treasury and the strategic planning teams. Regular cross-functional meetings and integrated planning systems can help ensure that the Treasury is not only aware of the company's strategic direction but is also actively contributing to its realization. This could involve scenario planning exercises that take into account various strategic moves and their potential impact on liquidity and risk profiles.

Impact of Technological Advancements on Treasury

The rapid evolution of financial technology has significant implications for Treasury operations. According to a BCG analysis, companies that leverage digital tools in their Treasury functions can see up to a 30% improvement in efficiency. Digital solutions can automate routine tasks, enhance analytical capabilities, and provide better visibility into cash positions and financial risks. It is crucial for Treasuries to stay current with technological advancements to maintain operational efficiency and strategic advantage.

Adopting technologies such as artificial intelligence for predictive analytics, blockchain for secure and transparent transactions, and advanced Treasury Management Systems (TMS) can transform the way a Treasury operates. However, it requires a strategic approach to technology investment and a readiness to adapt to new ways of working. Companies should consider their specific needs and the potential ROI of these technologies before embarking on significant transformations.

Measuring the Success of Treasury Optimization

Quantifying the success of Treasury optimization efforts is vital for justifying investments and guiding continuous improvement. According to Deloitte's "Global Corporate Treasury Survey," leading Treasuries use a combination of financial metrics and operational KPIs to measure their performance. Metrics such as cost savings, return on investment (ROI), and efficiency ratios are commonly used to assess the impact of Treasury optimization initiatives.

In addition to financial metrics, qualitative assessments can provide a more nuanced view of the Treasury's performance. These might include employee satisfaction scores, which reflect the impact of new systems and processes on the Treasury team's work, or stakeholder feedback, which can indicate how well the Treasury is supporting business operations. A balanced scorecard approach that incorporates a range of quantitative and qualitative measures is often most effective in measuring success.

Ensuring Sustainable Change in Treasury Operations

Implementing change in Treasury operations is only the beginning; ensuring that these changes are sustainable over the long term is a greater challenge. Research from KPMG indicates that approximately 70% of all organizational change efforts fail due to lack of employee engagement and inadequate management support. To avoid this, it's imperative to focus on change management principles, emphasizing clear communication, training, and the involvement of Treasury staff in the change process.

Additionally, establishing a continuous improvement culture within the Treasury is essential for maintaining momentum and adapting to future challenges. This involves regular reviews of processes and systems, encouraging innovation and feedback from team members, and staying informed about industry best practices. By doing so, the Treasury can evolve proactively and contribute to the company's resilience and competitiveness in a constantly changing business environment.

Treasury Case Studies

Here are additional case studies related to Treasury.

Financial Resilience Enhancement in Oil & Gas

Scenario: The organization is a mid-sized entity operating within the oil & gas sector, facing volatility in commodity prices and regulatory pressures.

Read Full Case Study

Treasury Optimization for Mining Corporation

Scenario: The organization is a global mining corporation grappling with liquidity management inefficiencies in a volatile commodity market.

Read Full Case Study

Liquidity Management Enhancement for Luxury Goods Retailer

Scenario: The organization in question operates within the luxury retail sector, managing a high volume of international transactions across multiple currencies.

Read Full Case Study

Treasury Optimization for Agriculture Firm in Competitive Market

Scenario: The organization is a mid-sized player in the agriculture sector grappling with cash flow inconsistencies and foreign exchange risks.

Read Full Case Study


Explore additional related case studies

Additional Resources Relevant to Treasury

Here are additional best practices relevant to Treasury from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented a comprehensive risk management framework, reducing financial risk exposure by 25%.
  • Adopted new Treasury Management Systems (TMS), enhancing operational efficiency by 30%.
  • Improved cash conversion cycle (CCC) efficiency, resulting in a 15% reduction in the cash conversion period.
  • Achieved operational cost savings of 20% through process automation and optimized banking relationships.
  • Enhanced forecasting accuracy, leading to a 10% reduction in liquidity buffers.
  • Increased hedge effectiveness by 35%, mitigating adverse impacts of currency and interest rate fluctuations.

The initiative has been a resounding success, evidenced by significant improvements across key Treasury operations and financial metrics. The reduction in financial risk exposure and operational cost savings directly contribute to the company's financial stability and efficiency. The adoption of new TMS and process automation has not only enhanced operational efficiency but also positioned the Treasury to better support strategic decision-making. The improvements in cash conversion cycle efficiency and forecasting accuracy further underscore the effectiveness of the initiative. However, the journey could have been even more impactful with earlier stakeholder engagement to mitigate resistance to change and a more aggressive approach towards integrating predictive analytics and AI for real-time decision-making.

For next steps, it is recommended to focus on further integrating technological advancements, particularly in predictive analytics and artificial intelligence, to enhance real-time decision-making and risk assessment capabilities. Additionally, fostering a culture of continuous improvement and innovation within the Treasury team will be crucial. Regular training and development programs should be instituted to keep the team abreast of industry best practices and emerging technologies. Finally, establishing more robust communication channels between the Treasury and strategic planning teams will ensure that financial planning is fully aligned with the company's strategic goals, enhancing overall corporate performance.


 
Mark Bridges, Chicago

Strategy & Operations, Management Consulting

The development of this case study was overseen by Mark Bridges. Mark is a Senior Director of Strategy at Flevy. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago.

To cite this article, please use:

Source: Treasury Optimization for Agriculture Firm in Competitive Market, Flevy Management Insights, Mark Bridges, 2025


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
 
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC




Additional Flevy Management Insights

Game Theory Strategic Initiative in Luxury Retail

Scenario: The organization is a luxury fashion retailer experiencing competitive pressures in a saturated market and needs to reassess its strategic positioning.

Read Full Case Study

Implementation of the Zachman Framework for a Global Financial Entity

Scenario: An international financial firm is in the process of driving a significant technological shift across its global operations.

Read Full Case Study

Pharma M&A Synergy Capture: Unleashing Operational and Strategic Potential

Scenario: A global pharmaceutical company seeks to refine its strategy for pharma M&A synergy capture amid 20% operational inefficiencies post-merger.

Read Full Case Study

Total Quality Management (TQM) Enhancement in Luxury Hotels

Scenario: The organization in question operates a chain of luxury hotels, facing significant issues in maintaining consistent quality standards across all properties.

Read Full Case Study

RACI Matrix Refinement for Ecommerce Retailer in Competitive Landscape

Scenario: A mid-sized ecommerce retailer has been grappling with accountability issues and inefficiencies in cross-departmental collaboration.

Read Full Case Study

Change Management for Semiconductor Manufacturer

Scenario: The company is a semiconductor manufacturer that is grappling with rapid technological changes and a need for organizational agility.

Read Full Case Study

Dynamic Pricing Strategy for Regional Telecom Operator

Scenario: The organization, a mid-sized telecom operator in the Asia-Pacific region, is grappling with heightened competition and customer churn due to inconsistent and non-competitive pricing structures.

Read Full Case Study

Boosting Sales and Market Share in the Consumer Electronics Industry

Scenario: A mid-size consumer electronics manufacturer implemented a strategic Sales Management framework to address declining sales and market share.

Read Full Case Study

Core Competencies Analysis for a Rapidly Growing Tech Company

Scenario: A technology firm, experiencing rapid growth and expansion, is struggling to maintain its competitive edge due to a lack of clarity on its core competencies.

Read Full Case Study

Luxury Brand Expansion in Emerging Markets

Scenario: The organization is a high-end luxury goods manufacturer looking to expand its market presence in Asia.

Read Full Case Study

RACI Matrix Optimization for Life Sciences Firm in Biotechnology

Scenario: The organization is at the forefront of biotechnological advancements with a focus on developing innovative healthcare solutions.

Read Full Case Study

Porter's Five Forces Analysis for a Big Pharma Company

Scenario: A leading pharmaceutical manufacturer finds their market competitiveness threatened due to increasing supplier bargaining power, heightened rivalry among existing companies, and rising threats of substitutes.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.