Automation of Financial process through SAP BCM Implementation for a petrochemical Legend  

SAP BCM  for managing multiple bank communication interfaces, enabling the client to connect & track the entire payment lifecycle of a transaction

About the Client

The client is a holding company whose main activity focuses on Petrochemical sector in KSA, registered in Saudi financial market. They manufacture and market quality chemical products that are in compliance with applicable local and international regulations. The company participates in many joint ventures with local and international partners providing valuable investment opportunities for Saudi private sector in Manufacturing and Petrochemicals industry.

Business Situation

The client constantly seeks to achieve the highest level of reliability and value in their products. When a new idea/concept arises with regards to improvement of their products or business, the organization takes the initiatives very sincerely, adopting the best practices thus enhancing the quality of work.

Implementation of SAP BCM for the client's business units would help in easing the payment process through banks for their suppliers/ vendors, automate the transmission of payment data to vendors and employees, monitor payment status and bank statement, increase visibility and traceability including real time reporting.

The client wanted to integrate its shared services with the main partner bank to automate the payment process of the vendors. The solution has been selected by the client, mainly to overcome the need of establishing and maintaining B2B relationship with every financial entity they are dealing with or would deal in future.

Service Offered By Kaar

Kaar, after a comprehensive study of the business scenario, implemented SAP Bank Communication Management (BCM) used for managing multiple bank communication interfaces, enabling the client to connect with the other banks and to track the entire payment life cycle of a transaction and improve straight-through processing rates and internal compliance. Kaar reviewed the existing contracts (SWIFT/ East Nets) to understand the available services and proposed additional services, licenses or subscriptions required with respect to SWIFT/ East Nets to integrated with WPS (Saudi regulations) and other regulations relating to SAP BCM communication.

Challenges faced

Hindered Business Transaction
  • Interruption and postponement in payment to vendor and employee
  • Programmed cheque printing for approved payments
  • Integration of shared services with other banks was a complicated process
Implementation of SAP BCM integrated the functionalities of the client with the other banks and simplified the payment and transaction processes. It improved the processing cycle time which in turn enhanced the workflow throughout the business process thus enabling business continuity.

Business Benefits

  • Automation of the payment process reduces manual work
  • Common interface for payment processing with reduced cycle time even when dealing with multiple banks
  • Payment runs are batched based on various criteria predefined in the system configuration.
  • Workflow based approval system ensures that payments are routed through a proper channel with minimal manual efforts.
  • Payment file is generated upon the final authorization which is sent to the bank directly using BCM
  • Single point of reporting tool for the status of payments, showing clear visibility to the stakeholders

About KAAR

Kaar Technologies is a global consulting firm focused at designing, delivering and deploying the finest ideas and SAP expertise to empower companies in achieving new heights of excellence in today's challenging business landscape.

Our combined thrust drawn from the business vision of our leadership team and assimilated SAP capability propels us to partner with our clients in identifying and architecting their business agenda. As a CMMi level 3 company, Kaar believes in being a trusted advisor to clients and fosters long-term working relationships by exceeding customer expectations.

Driven by the steadfast pursuit of excellence, Kaar Technologies exudes professionalism and proficiency in all areas of function. Every day we are inspired to impact businesses with original and imaginative approaches, helping to cultivate tomorrow's breakthroughs. ‚Äč


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