As the first company in Poland, KGHM is implementing the functionality of an in-house cash in the SAP system. The new solution helps optimize cash management, particularly in settlements between the company’s units and banks. The implementation is being carried out by IMG Polska and BCC.
The implementation is a further stage of changes and improvements in cash management, both in payments with partners and between KGHM units, introduced in KGHM. As continuation of the project, executed by IMG company, called ‘Centralization of treasury management’ (FIN1), KGHM has decided to develop the SAP it uses by the in-house cash solution. The implementation is carried out by BCC together with IMG with great involvement of the company’s employees.
KGHM Polska Miedź S.A. is a multi-plant company. Among its 11 units there are 3 mines and 3 copper smelting plants. Before the implementation of in-house cash solution every unit had its own bank accounts and cash to manage. Due to a large number of settlements it became necessary to centralize them in the management office. The management’s role was to eliminate cash settlements between KGHM’s units, make mutual netting and consolidate cash as at the end of the day in order to achieve maximum profit in settlements with banks.
Thanks to in-house cash real cash is placed only at KGHM management board’s bank accounts. Units’ cash is kept at virtual accounts maintained by the management board in the IHC module. Such a solution greatly reduces bank costs, speeds developing cash reports on bank accounts, centralizes contact with banks and completely eliminates cash flow between units.
KGHM Polska Miedź S.A. has been already using the solution since 1 October 2005. On that day the pilot solution was started in one of the company’s units. Till April 2006 the functionality of in-house cash had been transferred to other units. The end of the project is planned for May.
KGHM is first of all one of the world’s biggest concerns producing refined copper and silver. The company is one of the biggest Polish exporters, one of the biggest and most important companies in Polish market. KGHM is the biggest European copper manufacturer which has its own ore deposits and its own integrated production structure from mining to the final, top-quality product. KGHM is the first in Europe and second in the world in silver production. More information: www.kghm.com.pl