*Jun. 2010 BPA Circulation Statement. Average TQ for the 6 month period ending

Jun. 2010 = 40,078

**2009 Readex Research Profile Study***Publisher’s Own Data.

Fast Factsensure your marketing dollars are well spent

11.4% of subscribers work with companies with sales of $10 billion or more**

17.7% with sales of $1 billion or more**

100% personal direct request, 80% one-year qualified*

Treasury & Risk reaches 99% of the Fortune 250, 97% of the Fortune 500 and 96% of the Fortune 1000***Fortune 250 — 99% Average 25 subscribers per companyFortune 500 — 97% Average 16 subscribers per company

Fortune 1000 — 96% Average 10 subscribers per company

In touch wIth the news and newsmakers, Treasury & Risk is your partner in reaching engaged and active senior financial executives of Fortune 1000 companies.

Published monthly since 1991, Treasury & Risk covers what its over 40,000 subscribers*, who are senior financial executives, need to know about new developments, emerging trends, best practices and technology in treasury and risk management as they take on greater strategic and leadership roles at global corporations.

Over 40,000 Finance PrOFessiOnals*

36.1%

21.8%

14.3%

6.6%

8.7%

2.6%6.8% 3.1% n Chief Financial Officers

n SVP, EVP, VP and Director of Finance

n Treasurer/Asst. Treasurer

n CAO/Controller/Asst. Controller

n Risk Management

n Pension Fund, Cash, Audit, Tax, Credit, Accounting Managers

n President, CEO, COO, Chairman & Board Member

n Other Financial Titles/allied to the Field

72%

november 2010 • treasuryandrisk.com

The 2010 AhA

Winners

Vanishing Corporate

DeriVatiVes exemption

strategiC treasUrY sUrVeY > fast aCh settLement

TreASUrer roGer bISCAY

CFo FrAnK CALDeronI

CisCo ConneCTs

To overAll exCellenCe

16 treaSury & riSk September 2010 treasuryandrisk.com

trEAsUrYMAnAGEMEnt

Image by Jon R

einfurt

cLouds offer reaL-tiMe transparency into a coMpany’s workinG

capitaL and More opportunity for dynaMic discountinG.

better supply Chain ViewWorking capital

is getting a higher priority than ever,

so tying up cash unproductively has

become an acute pain point.

—ariba’S LuGLi

ARIBA IS USING CLOUD computing to introduce fine-tuned cash flows to supply

chain management, offering both buyer and seller more visibility and control over

their working capital. “Pain points change,” notes Peter Lugli, senior director in charge

of the working capital management practice at Ariba. “Now cash is indeed king and

working capital is getting a higher priority than ever, so tying up cash unproductively

has become an acute pain point.” pliers. Now cloud computing is

“letting us take things to the next

level,” Lugli says.

“Many supply chains are still

mired in paper-laden, closed-loop

systems,” he says. “Without vis-

ibility and collaboration, corpo-

rate finance leaders are meeting

the ups and downs of today’s

volatile business environment

with one hand tied behind their

back. Cloud-enabled technology,

collaboration and community

consciousness help companies

better manage cash expectations

among them.”

Cloud computing involves

software running on multiple

servers in multiple locations that

share the hosting and process-

ing burden. Cloud-based solu-

tions help buyers and sellers to

quickly and easily connect and

do business, regardless of their

technology platforms. Companies

can combine data from disparate

systems, including ERPs, to get a

clear, consolidated view of their

spending—including cash obliga-

tions and cash expectations—and

make more informed decisions.

“Managing working capital is

still very inefficient because it is

largely driven by closed systems

and processes,” Lugli added.

“The key to improving things lies

in open systems that can be eas-

ily accessed regardless of their

architecture or delivery model

decisions. Cloud-based applica-

tions bring a higher level of pro-

ductivity to whole supply chains,

along with a greater degree of

collaboration.”

In Europe, global glass manu-

facturing leader NSG Group is

deploying the e-invoicing and

discount management solutions

within Ariba’s working capital

management suite. Ariba has

long offered electronic invoicing,

supplier visibility and dynamic

discounting, but Lugli says its

new cloud computing platform

will provide NSG with some

important advantages over the

older model, such as on-demand

technology to eliminate the bur-

dens associated with deploying

software and speed time and

value; a Web-based community

through which to discover, con-

Ariba for years has staked

out a position as a provider of

high-tech spend visibility and

control solutions, primarily for

buyers. The Sunnyvale, Calif.-

based company claims 91 of the

Fortune 100 as customers and

boasts a network of 300,000 sup-

BY RICHARD GAMBLE

James Steinberg

treasuryandrisk.com September 2010 treaSury & riSk 17

trEAsUrYMAnAGEMEnt

nect and collaborate with a

global network of trading part-

ners; and the ability to augment

internal resources with always-

on expertise and commerce

services.

“Buyers like NSG are put-

ting in place these solutions in

a cloud-based environment to

reduce cost and start-up time and

leverage an existing community

of already connected suppliers,”

Lugli says.

In addition, solutions within

Ariba’s working capital manage-

ment suite let suppliers mon-

etize receivables whenever they

choose, he says. With highly

flexible dynamic discounting,

both buyers and sellers can

negotiate accelerated payment

of any invoice on any date at

a discount that satisfies them

both, without involving third-

party financing, Lugli explains.

“With companies hoarding cash

at record highs and earning re-

cord lows on cash investments,

it’s a great time to invest in your

own supply chain and earn an

attractive return with low risk at

the same time you support your

company’s sales.”

NSG, a Japanese company

with $6.3 billion of revenue

in 2010, acquired U.K. glass

manufacturer Pilkington in 2006.

Its U.K. treasury staff is spear-

heading a supply chain liquidity

initiative that will target first

Europe, then North America and

finally Asia/Pacific, according

to John Wilgar, the company’s

Manchester-based global pro-

curement manager for process

and performance.

As it launched its initiative, NSG

considered three providers. All

three were good at moving in-

voices from point A to point B, but

Ariba offered broader functional-

ity for suppliers, and that factor

dictated NSG’s choice. “A lot of

consideration for suppliers went

into our decisions,” Wilgar says.

“We also liked [Ariba’s] global

scalability.” It helped that Ariba’s

network included languages like

Polish, he adds.

The project, which kicked off

in June, won’t begin delivering

customer invoices electronically

through Ariba until the fall, so

NSG can’t yet quantify its benefits.

But its goals are to provide inte-

gration with suppliers’ systems,

offer real-time visibility into the

company’s working capital, reduce

cycle times, eliminate paper and

improve dynamic communication

with suppliers, Wilgar explains. In

Europe, NSG currently receives

only paper invoices, roughly

250,000 annually, and he says one

quantifiable goal is to convert half

of those to electronic delivery.

NSG clearly has an opportu-

nity to reduce cycle times. It is

pretty efficient in Germany, but

in other countries, it may take up

to 30 days just to get an invoice

received, approved and into the

accounts payable system for pay-

ment, Wilgar says.

etting electronic invoices

through Ariba’s system, using

automated workflow and get-

ting those invoices quickly into

AP will reduce NSG’s cycle time

dramatically and take a lot of

strain off its European suppliers,

he says. Suppliers will be able to

see the status of the invoice right

away. In some cases, cycle time

will be cut from 30 to zero days,

he adds.

Once the company has vis-

ibility, the days before an invoice

is scheduled for payment become

fertile ground for dynamic dis-

counting. If a supplier offers a

static discount, NSG will see that

and be able to take advantage

of it. “So far we have not been

nimble enough to take advantage

of the discounts being offered in

some countries,” Wilgar notes.

The supplier can see a range of

dynamic discounting options that

essentially let it determine when

it will be paid and how much of

a discount it will concede for the

early payment date of its choice.

The funds for that early payment

may come from NSG or a third

party, depending on the circum-

stances and NSG’s preference,

Wilgar explains.

While results are not yet in,

Wilgar is confident that the project

will pay for itself in less than a

year. Replacing a highly manual

process for sending out invoices

with a highly automated one will

save staff time.

NSG will also save money by

optimizing discount possibilities

and earning a much higher return

on that use of its short-term cash

than it would realize by investing

in bank or money market prod-

ucts. And improved relationships

with suppliers could translate into

better contract prices from pre-

ferred providers—and financially

healthier suppliers to meet future

demand—down the road.

NSG currently receives 250,000 paper invoices a year in Europe and one goal of the project is to convert half of those invoices to electronic delivery.—NSG’S WiLGar

Coming up:december/January: The Economic Outlook for 2011 looks at CFOs to watch and perspectives from economists.

Survey: Economic Confidence Survey

February: The Middle Market issue covers innovative finance operations and technology in the middle market.

Special: Women in Finance: 25 High-Profile Executives

march: In the Treasury and Trends issue, Treasury & Risk will give an update on dashboards and workstations, as well as discuss investment strategies.

Survey: Retirement Trends

treasuryandrisk.com

Access the Power oF an Integrated medIa buy

executIng a marketIng campaIgn across multiple platforms is critical in order to keep your message visible where your buyers can be found. That’s why Treasury & Risk offers a comprehensive portfolio of integrated media products that allow you to access the industry’s leading advisors.

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* Outsell’s “Marketing and Ad Spending Study 2010: Total US and B2B Advertising”

** Google Analytics. 14,359 average unique visitors over the 6 month period ending Jun. 31, 2010.

contact your busIness dIrector For more InFormatIon or to secure prIcIng today!

RobeRt cuRtoAssociate Publisher/East Business Director203.334.2002 ext. 1125rcurto@treasuryandrisk.com

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Treasury & risk’s inteRactive maRketinG

reen signals environmental awareness, but it’s also shorthand

for money. And in fact 80% of the finance executives who

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survey, sponsored by J.P. Morgan, say green strategies or

sustainability efforts have saved or are expected to save their company money. Certain green strategies

are quite popular, including converting to electronic transactions, which was cited by 71% of the

more than 200 finance executives surveyed. But corporations still have a ways to go: Just 31% say

their company has assessed its carbon footprint, only 37% say the company’s environmental strategy

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sustainability plans. More survey results can be found online at www.treasuryandrisk.coM

ANNUAL (OR EXPECTED) SAVINGS FROM GREEN STRATEGIES

PROCESSES TREASURY IS CONVERTING TO ELECTRONIC

OBSTACLES TO A COMPLETELYGREEN TREASURY

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WHICH GROUP OWNS THE SUSTAINABILITY PROGRAM?

HOW COMPANIES ARE ENCOURAGINGENVIRONMENTAL AWARENESS

RESPONDENTS’ COMPANY REVENUESIN THE MOST RECENT FISCAL YEAR

WHAT COMPANIES ARE DOING TO TRIM THEIR CARBON FOOTPRINT

79% of executives say shifting to a completely green treasury operation should result in increased efficiencies.

from Green Efforts

wednesday May19th at 2:00 p.m. ET

Audit and regulatory requirements. Customer due diligence. Globalization. Process and payment electronification. Commoditization of traditional payment and treasury services. Competition from non-banks.

These are just a few of the diverse challenges that financial institutions face as we balance the need to manage risk, control costs, enhance capabilities, and grow revenue with our commitment to help clients achieve their own goals. In this Webinar, a BNY Mellon Enterprise Treasury Services outsourcing expert will show you ways to address these issues by exploring:

» The benefits inherent in treasury services outsourcing

» Outsourcing best practices

You’ll also have the opportunity to hear from some of your peer banks who will discuss the factors and strategies they used to evaluate the potential to outsource and the outcomes they achieved by moving forward.

By attending, you will better understand if outsourcing is a viable solution for your bank and how to get started with an evaluation process.

treasury & risk and BNy MelloN eNterprise treasury services present a free web seMinar

reducing your infrastructure costs through outsourcing treasury services

Featured Speaker:

■ Christopher J. Mager, CTP Managing Director, Channel Business Manager BNY Mellon Enterprise Treasury Services

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For more information and to register visit: www.treasuryandrisk.com/outsourcing

treasuryandrisk.com