Consolidation and treasury management by subcontracted order: the experience of the SunCity Group
Marco Mascellanti, SunCity’s Finance Manager, explains here how he managed to simplify management activities and get the most out of the company's cash flow thanks to Agicap.
Read moreWatch the videoKey takeaways
Due to some treasury-related difficulties that have intensified especially in the recent period, SunCity’s finance team chose to adopt cash flow management software.
Before Agicap, SunCity managed the cash flow on Excel by retrieving financial data from business tools. Unfortunately, however, manual management wasted a lot of time with a high risk of making mistakes.
For a group such as SunCity, three functions are indispensable: entity consolidation, integration with business tools and bank accounts, and forecasting to estimate what the cash needs may be in the future.
Some of the treasury difficulties we experience are closely related to the nature of a multi-entity company. First of all because of the business models, which are specific to each of the two companies, and then because of the agreements made with individual suppliers.
9
bank accounts connected to Agicap
300
partners in Italy (installers, sales staff, designers, maintenance, etc.).
10
years of experience in the energy sector
Customer’s history
SunCity Group was founded in 2012 and is a renewable energy company. The group is controlled by a holding company with two operating companies, SunCity and NetCity, two companies with very different needs, at least in terms of financial management: while SunCity Srl addresses an audience of small and medium-sized companies to whom it provides energy efficiency services, NetCity Srl speaks to an audience of private consumers, and to them it dedicates a wide range of energy products and related services, including system installation and assistance.
The two business units therefore - although with the same objectives - move in the field differently, speak to two targets with different needs, and therefore give rise to peculiar dynamics to which it is necessary to respond with tailor-made strategies.
Both entities are growing strongly, especially after the agreement we reached in 2019 with the utility A2A, which helped us in the financing part of large projects.
SunCity and NetCity, moreover, only produce on subcontracted order, a business choice that requires placing greater attention to resource management. The procurement of materials, such as modules and inverters, in fact, does not follow the flow of the order. Materials have to be purchased and, then, stored in the warehouse.
Due to some treasury-related difficulties that have intensified especially in the last period, SunCity's finance team chose to adopt cash flow management software.
Customer’s needs
Dynamic cash flow management at both group and entity level
Difficulties in cash flow management related to subcontracted order work
Controlling sharp spikes in raw material costs due to inflation
Solution
For a corporate group such as SunCity, achieving cash balance is only possible with a proper cash management practice.
Before Agicap, SunCity managed cash flow on Excel by retrieving financial data from company's tools. Unfortunately, however, manual management wasted a lot of time with a high risk of making mistakes. For SunCity, there are three indispensable functions: entity consolidation, integration with business tools and bank accounts, and forecasting to estimate what the cash needs may be in the future.
Agicap meets the needs of the SunCity Group exactly. Cash flow consolidation takes place in real time, and this gives us a clear and complete picture of how cash is moving in individual companies, but also in the entire corporate group. In addition to the consolidation of companies, the cash flow forecast function facilitates us in the strategic-organisational part.
Introducing Agicap into the company has helped SunCity maximise results in cash flow management. More importantly, it has enabled it to do so with significant time saving and eliminating the risk of possible errors. The automation of treasury activities, right from data entry through synchronisation to the construction of forecast scenarios, is an indispensable support for successful corporate groups.
Conclusion
Dynamic cash flow management at both group and entity level
Ability to monitor cash deviation generated by subcostructed order work
Elimination of errors due to manual imports
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