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Insight to All Things Currency and Treasury Management

With 60 sites in 27 countries, Jabil Inc. is a recognized electronic design production and product management services company. As a byproduct of the company’s double-digit growth, which was brought on by new customer relationships and growing global operations, Jabil found themselves increasingly exposed to foreign currency volatility.
 
At that time, the independent operation of each manufacturing facility made it difficult to accurately identify and mitigate FX exposures. Data was being manually pulled from SAP and the team was in the process of transitioning from a transactional currency hedging approach to a net balance sheet hedging approach.
 

JABIL’S SOLUTION

 
To combat the issues that were hurting the overall effectiveness of Jabil’s program, the company decided to enlist the help of technologies they knew could not only help them automate their processes but also allow them to leverage their existing investments in SAP and FXall.
 
Working with site controllers, treasury decided to implement a closed-loop process for identifying, analyzing and managing their global FX exposure. This process gave end-to-end visibility and control over the entire transaction flow – from exposure data gathering through journal entries and formal disclosures in the financial statement.
 

 
Like many other companies with manual processes, Jabil formerly struggled with manual data extraction from SAP. But, with the help of FiREapps they were able to automatically extract data and use that information to accurately define and calculate net balance sheet exposure for each site, have access to detailed and summary-level views of balance sheet exposure across all currency pairs in real time and facilitate a closed-loop, end-to-end, automated process.
 
 

JABIL TODAY

 
Since implementing their new FX management process, Jabil has been able to reduce the time needed to gain visibility into exposures, increased the frequency of their exposure analysis improve forecast and hedge results, and much more.
 

Reduced time to FX exposure visibility from a full day to less than 10 minutes with automated data extraction from SAP into FiREapps.

 

Increased the frequency of exposure analysis from monthly to weekly with on-demand analytics.

 

Improved forecasts and hedge results using historical period-over-period analytics to identify trends and adjust hedge actions accordingly.

 
 

NEXT STEPS

 
If your organization suffers from issues related to decentralized treasury and finance teams or continues to be plagued by FX impacts to EPS or EBITDA, FiREapps can help.
 
Download the full Jabil case study to learn more about the challenges Jabil faced, more details about the solutions they implemented to solve those problems and additional results they saw.