Accelerating Hyundai Engineering’s treasury transformation
By implementing a centralised solution to six entities in its core markets , Hyundai Engineering established a future-ready treasury function.
Hyundai Engineering established a future-ready treasury function by implementing a centralised solution to six entities in its core markets outside of South Korea. It achieved seamless Enterprise Resource Planning (ERP) system integration, established automated payment execution, and enhanced real-time visibility – resulting in streamlined and optimised cash management.
Background
Hyundai Engineering, with its headquarters in South Korea, delivers large-scale engineering and infrastructure projects globally. Its focus business areas are chemical engineering plants, power and energy plants, renewable energy, construction, housing, and asset management. With approximately 55 per cent of its revenue generated from overseas markets, Hyundai Engineering is a critical contributor to Hyundai Group’s broader global business.
Results
- Enhanced control and reduced risk of human error through the standardisation of payment execution and reporting.
- Increased visibility over operating markets, enabling more efficient cash use and more accurate cash forecasting.
- Centralised operations and streamlined processes, reducing reconciliation times and overall resource needs.
Client challenges and objectives
With increasing success beyond South Korea in the rest of Asia, Hyundai Engineering wanted to ensure its regional treasury function was fit to support future growth. However, its legacy manual approach of using multiple banks with multiple file formats was inefficient and carried risk of human error.
To ensure greater visibility and control, Hyundai Engineering elected to link its key banking platforms in the region with its centralised ERP. It identified India and Indonesia – two of its largest markets outside of South Korea – to be the focal points of this centralisation.
Its plan was to connect entities in India and Indonesia to the centralised treasury at its headquarters using SWIFT FileAct. To achieve its goals of visibility and cash optimisation, Hyundai Engineering’s specific objectives were to:
- Establish a secure, ERP-integrated payments and reporting process led by its central treasury team.
- Streamline local payment processes via automation.
- Standardise and secure reporting flows to and from its entities in India and Indonesia.
- Implement the changes with minimal burden on the local entities.
- Determine a clear governance structure with centrally managed documentation, and consistent communication throughout implementation.
Solution and Implementation
In choosing an implementing partner, it was critical for Hyundai Engineering to select a bank with experience balancing seamless execution with careful risk management. It wanted a partner with familiarity navigating cross-border treasury transformation – plus the in-market technical capabilities for ERP integration.
Hyundai Engineering selected Standard Chartered, and the Bank subsequently implemented new standardised cash management infrastructure using a centralised, automated SWIFT FileAct solution. With the inclusion of six entities across India and Indonesia, the Bank took a layered implementation approach:
- Project managed by members of the Standard Chartered Global Implementation Team that are based in South Korea. Having team members on ground with the client team enhances communication, accelerates resolution management, and ensures clear timeline alignment with Hyundai Engineering’s headquarters.
- Backed by the rest of Standard Chartered’s Global Implementation Team in Singapore (the Bank’s Asian headquarters) to ensure the latest and best transitional practices were applied.
- Supported by implementation managers on the ground in India and Indonesia, to overcome any language, regulatory, or time-zone barriers.
Standard Chartered Korea’s dedicated project management played a key role in ensuring a smooth execution. Over the course of six months, their proactive approach, structured weekly calls, and commitment to resolving challenges helped us navigate the integration efficiently.Hyeondo ImManager, Treasury Team, Hyundai Engineering
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