Megaprojekt globale Payment

Factory – wie die Umsetzung

gelingt

30. Oktober 2018

Dirk Schreiber, Leiter Group Treasury, Fresenius SE & Co. KGaA

1

Group structure

The Healthcare Group Worldwide, Nov. 2, 2017: Fresenius SE & Co. KGaA, Corporate Communications 2

Products and services for

people with chronic kidney

failure.

Medicines and technologies

for infusion, transfusion and

clinical nutrition.

Europe‘s leading private

hospital operator, with HELIOS

and Quirónsalud hospitals.

Projects and services for

hospitals and other healthcare

facilities worldwide.

2017 sales: > €17 billion 2017 sales: > €6 billion 2017 sales: > €8 billion 2017 sales: > €1 billion

Fresenius: A leading global healthcare company

3

> 270,000 employees

> 160 countries

> €33 billion in sales

> 90 production facilities

Key Drivers for Payment Factory

4

Payment Factory

Compliance

IT Strategy

Shared Service Centers

Payment Factory – Value Tree

5

Treasury/ Finance

Consolidation of bank accounts

Optimization of Payment Processes

• Lower maintenance costs for bank accounts

• Transparency for reporting/ covenants • Reduction of counterparty risk • Mitigation of compliance risks

• Reduction of bank transaction fees

• Lower operational costs

• Reduction of bank claims (returns/rejects)

• Mitigation of compliance risks • Harmonization of processes

Consolidation of IT infrastructure

• Savings of local IT cost for interfaces/formats

• Harmonization of IT products • Higher IT security

IT

Category Value driver Benefits

tangible intangible

Payment Processing Yesterday

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Bank 1 Country 1

Hong Kong Country 3 Country 4 Australia Country 1 Country 2

Bank 2 Country 2

Bank 2 Country 3

Bank 3 Country 4

E-Banking 1 E-Banking 2 E-Banking 3 E-Banking 4

YESTERDAY

manual up- & downloads of payment files and bank statements

Payment Processing Today

7

TODAY

Bank Group 1

Plug-in

Single point of contact

Australia Country 1 Australia Country 3 Australia Country 2 Australia Country 4

Bank Group 2

Integrated transfers of bank statements and payment files

Plug-in Plug-in Plug-in

Bank Group 3

Payment Factory Technical Overview

8

A R / A P

SAP Systems (ERP & Treasury)

SAP PI

Syste

ms /

To

ols

Payments F110

SEPA, CGI, Local bank formats

Approval of payment files, 4-eye principal

EBICS

SWIFT

Host-to-Host

Payment Files (IDocs)

Banks

PI messages, status of payments & bank statements

SAP Add on

Workstreams

9

SAP Basis Installation

(TIS Plugin)

Connectivity SAP-TIS

Basis Setup

TIS Platform

Connecting Banks & Entities

Reconciliation of Payment Formats

SAP Customizing (Payment Run,

Bank Statements)

Bank Contracts Service Level Agreements

Data Protection

Setup

Technical Onboarding

Legal Onboarding

Governance & Compliance within Payment Factory

10

Opening of Bank Accounts

Yearly Confirmation of Account

Infrastructure

Approval of Payments

Authorization of Approvers

Workflows with four-eye principle/dual control principle

Bank Account Manager (BAM)

Bank Transaction Manager (BTM)

Payment Possibilities within TIS Platform

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• payment run SAP (F110)

• standard procedure

• full integration in SAP SAP

• manual upload of payment file

• eg. for payroll as bulk payment

• no integration in SAP File Upload

• manual entry of payments in TIS

• eg. for bank transfers

• no integration in SAP

Manual Payment

Project Scope for Payment Factory within Fresenius

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• Roll out schedule: 10/2016 – 12/2020

• 20 relationship banks

• 1.100 bank accounts

• 300 legal entities

• 53 countries

• 12 SAP systems (incl. test environment)

• Integration of SAP Inhouse bank

TIS Roll Out until 2020 – 53 Countries

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Lessons learned during roll out

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• Proper user interface, good performance, high transparency

• Deep SAP integration, good tool to allocate bank statements

• Outsourcing of payment file

reconciliation enables rapid roll outs • Clean up of account infrastructure

and payment methods is a prerequisite for a successful implementation

Lessons learned during roll out

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• Quick wins first, try to avoid

complicated countries with respect to regulations and exotic payment formats outside the TIS library

• Check vendor and bank master data

within SAP prior onboarding new company codes

• Clarify IT security and privacy topics,

do not underestimate internal efforts related to SAP integration

Q&A

16

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