How Estée Lauder Transformed Treasury Operations with Serrala & SAP In-House Banking
Company
Estée Lauder
Industry
Cosmetic manufacturer
Revenue
$15.2B
Employees
52,000+
Headquarters
New York, NY, USA
Estée Lauder’s legacy treasury system was fragmented, costly, and inefficient, creating unnecessary reliance on external banking services. Managing payments, liquidity, and intercompany settlements across 35+ banking partners led to high fees, slow processes, and a lack of real-time visibility.
- $650M in monthly settlements depended on costly external banking services
- 550+ accounts across multiple banks, making cash management difficult
- 35+ different banking relationships in EMEA, adding complexity
- Manual treasury processes, creating inefficiencies and security risks
In-House Banking (IHB) – The New Treasury Standard
To centralize treasury operations, Estée Lauder implemented SAP In-House Banking (IHB), consolidating intercompany payments and cash management into a unified structure.
- Three IHB centers (U.S. & Belgium) for global liquidity optimization
- Automated intercompany settlements, eliminating external banking fees
- Centralized treasury operations, improving cash visibility and control
Payments-on-Behalf-of (PoBo) & Straight-Through Processing (STP)
Estée Lauder eliminated redundant bank accounts and streamlined payment execution by implementing PoBo and automating STP for vendor and treasury payments.
- PoBo centralized payments, eliminating the need for subsidiary accounts
- STP automation reduced manual intervention, ensuring real-time processing
- Single SWIFT gateway replaced multiple bank connections, cutting costs
Intercompany Netting & FX Hedge Settlement
The company transitioned from external bank-driven netting to an in-house model, reducing transaction fees and optimizing intercompany FX hedge processing.
- 200K+ invoices processed monthly via automated netting
- Integrated FX hedge settlements, eliminating manual reconciliation
- Cashless settlement via virtual accounts, improving efficiency
Global Cash Pooling & Liquidity Optimization
A fully automated cash pooling structure enabled real-time cash positioning across 25 currencies and 163 participants, reducing external borrowing costs.
- Zero-Balance & Target-Balance structures for efficient cash pooling
- Automated fund movements, eliminating manual tracking
- Internal lending reduced reliance on external borrowing, lowering costs
In-House Banking (IHB) – The New Treasury Standard
To centralize treasury operations, Estée Lauder implemented SAP In-House Banking (IHB), consolidating intercompany payments and cash management into a unified structure.
- Three IHB centers (U.S. & Belgium) for global liquidity optimization
- Automated intercompany settlements, eliminating external banking fees
- Centralized treasury operations, improving cash visibility and control
Payments-on-Behalf-of (POBO) & Straight-Through Processing (STP)
Estée Lauder eliminated redundant bank accounts and streamlined payment execution by implementing PoBo and automating STP for vendor and treasury payments.
- PoBo centralized payments, eliminating the need for subsidiary accounts
- STP automation reduced manual intervention, ensuring real-time processing
- Single SWIFT gateway replaced multiple bank connections, cutting costs
Intercompany Netting & FX Hedge Settlement
The company transitioned from external bank-driven netting to an in-house model, reducing transaction fees and optimizing intercompany FX hedge processing.
- 200K+ invoices processed monthly via automated netting
- Integrated FX hedge settlements, eliminating manual reconciliation
- Cashless settlement via virtual accounts, improving efficiency
Global Cash Pooling & Liquidity Optimization
A fully automated cash pooling structure enabled real-time cash positioning across 25 currencies and 163 participants, reducing external borrowing costs.
- Zero-Balance & Target-Balance structures for efficient cash pooling
- Automated fund movements, eliminating manual tracking
- Internal lending reduced reliance on external borrowing, lowering costs
Estée Lauder’s treasury transformation with SAP In-House Banking and Serrala resulted in substantial cost savings, efficiency gains, and enhanced global financial control.
Key Treasury Results
- $650M+ in intercompany settlements automated monthly
- 163 participants in centralized cash pooling, optimizing liquidity
- 35+ bank relationships consolidated, simplifying treasury management
- Fully automated, real-time payments, eliminating manual processing
- Seamless FX hedge settlement & intercompany netting, reducing fees
Strategic Benefits of the Transformation
- Reduced manual treasury processes, improving efficiency and compliance
- Optimized intercompany settlements, saving millions in banking fees
- Enabled real-time cash visibility, enhancing financial oversight
- Lowered external borrowing needs, improving working capital management
With SAP In-House Banking and Serrala’s expertise, Estée Lauder set a new benchmark in treasury automation, ensuring a scalable, cost-effective, and future-ready treasury operation.
Check out the full story in this webinar with Estée Lauder’s EVP of Treasury, Bart Taeymans.
Business Need
Estée Lauder’s legacy treasury system was fragmented, costly, and inefficient, creating unnecessary reliance on external banking services. Managing payments, liquidity, and intercompany settlements across 35+ banking partners led to high fees, slow processes, and a lack of real-time visibility.
- $650M in monthly settlements depended on costly external banking services
- 550+ accounts across multiple banks, making cash management difficult
- 35+ different banking relationships in EMEA, adding complexity
- Manual treasury processes, creating inefficiencies and security risks
Solution Implemented
In-House Banking (IHB) – The New Treasury Standard
To centralize treasury operations, Estée Lauder implemented SAP In-House Banking (IHB), consolidating intercompany payments and cash management into a unified structure.
- Three IHB centers (U.S. & Belgium) for global liquidity optimization
- Automated intercompany settlements, eliminating external banking fees
- Centralized treasury operations, improving cash visibility and control
Payments-on-Behalf-of (PoBo) & Straight-Through Processing (STP)
Estée Lauder eliminated redundant bank accounts and streamlined payment execution by implementing PoBo and automating STP for vendor and treasury payments.
- PoBo centralized payments, eliminating the need for subsidiary accounts
- STP automation reduced manual intervention, ensuring real-time processing
- Single SWIFT gateway replaced multiple bank connections, cutting costs
Intercompany Netting & FX Hedge Settlement
The company transitioned from external bank-driven netting to an in-house model, reducing transaction fees and optimizing intercompany FX hedge processing.
- 200K+ invoices processed monthly via automated netting
- Integrated FX hedge settlements, eliminating manual reconciliation
- Cashless settlement via virtual accounts, improving efficiency
Global Cash Pooling & Liquidity Optimization
A fully automated cash pooling structure enabled real-time cash positioning across 25 currencies and 163 participants, reducing external borrowing costs.
- Zero-Balance & Target-Balance structures for efficient cash pooling
- Automated fund movements, eliminating manual tracking
- Internal lending reduced reliance on external borrowing, lowering costs
Results Achieved
In-House Banking (IHB) – The New Treasury Standard
To centralize treasury operations, Estée Lauder implemented SAP In-House Banking (IHB), consolidating intercompany payments and cash management into a unified structure.
- Three IHB centers (U.S. & Belgium) for global liquidity optimization
- Automated intercompany settlements, eliminating external banking fees
- Centralized treasury operations, improving cash visibility and control
Payments-on-Behalf-of (POBO) & Straight-Through Processing (STP)
Estée Lauder eliminated redundant bank accounts and streamlined payment execution by implementing PoBo and automating STP for vendor and treasury payments.
- PoBo centralized payments, eliminating the need for subsidiary accounts
- STP automation reduced manual intervention, ensuring real-time processing
- Single SWIFT gateway replaced multiple bank connections, cutting costs
Intercompany Netting & FX Hedge Settlement
The company transitioned from external bank-driven netting to an in-house model, reducing transaction fees and optimizing intercompany FX hedge processing.
- 200K+ invoices processed monthly via automated netting
- Integrated FX hedge settlements, eliminating manual reconciliation
- Cashless settlement via virtual accounts, improving efficiency
Global Cash Pooling & Liquidity Optimization
A fully automated cash pooling structure enabled real-time cash positioning across 25 currencies and 163 participants, reducing external borrowing costs.
- Zero-Balance & Target-Balance structures for efficient cash pooling
- Automated fund movements, eliminating manual tracking
- Internal lending reduced reliance on external borrowing, lowering costs
Estée Lauder’s treasury transformation with SAP In-House Banking and Serrala resulted in substantial cost savings, efficiency gains, and enhanced global financial control.
Key Treasury Results
- $650M+ in intercompany settlements automated monthly
- 163 participants in centralized cash pooling, optimizing liquidity
- 35+ bank relationships consolidated, simplifying treasury management
- Fully automated, real-time payments, eliminating manual processing
- Seamless FX hedge settlement & intercompany netting, reducing fees
Strategic Benefits of the Transformation
- Reduced manual treasury processes, improving efficiency and compliance
- Optimized intercompany settlements, saving millions in banking fees
- Enabled real-time cash visibility, enhancing financial oversight
- Lowered external borrowing needs, improving working capital management
With SAP In-House Banking and Serrala’s expertise, Estée Lauder set a new benchmark in treasury automation, ensuring a scalable, cost-effective, and future-ready treasury operation.
Check out the full story in this webinar with Estée Lauder’s EVP of Treasury, Bart Taeymans.
Related content
Baloise optimizes inbound and outbound payments for better treasury processes
Implementing a value-based IT infrastructure for better payments, cash application, cash management and treasury.
KRONES enhances treasury processes cash and liquidity planning with Serrala
Krones AG benefits from more accurate, more granular and faster liquidity planning thanks to the SAP-integrated solutions of Serrala.
Nordson pushes the boundaries of treasury technology
Learn how NORDSON reaches highest levels of automation, transparency and data quality with Serrala´s solutions.