How UniTransact Helps IKEA Indonesia To Run Business More Efficient

According to PwC’s CEO Survey¹ , 4 out of 10 CEOs have predicted the current business they have may not survive the coming decade, if they do not change their strategy and approach in running business. There is a need for a serious adjustment to help companies survive in the longer term.

One important aspect to be the focus of adjustment and strategy, is technology. The technological development in the last few decades has urged corporations to become more adaptive and to utilize it optimally, both for market deepening and to support business processes to be more efficient.

IKEA Indonesia, a multinational furniture company, is one of those companies which see the need for technology transformation. As part of the global companies network, numerous transactions with global suppliers become its daily activities. With total 460 outlets in 62 countries, IKEA currently has work with 1.600 suppliers around the world which are incorporated in IKEA Supply AG ².

As IKEA’s business continues to grow in Indonesia, the company requires a more efficient system and technology to facilitate transactions, including those with global suppliers using foreign currencies. More efficient process can certainly help businesses to grow faster.

That’s become the main reason for IKEA Indonesia to use the UniTransact service (UTB) from HSBC Indonesia from 2022. Corporate Finance and Treasury Manager IKEA Indonesia Hardy Susanto said UniTransact platform is really helpful to ease payment activities with global suppliers.

“UniTransact Platform offers more efficient, faster, smarter, and better transaction experience for their customers,” he said.

Hardy said before switching to UniTransact, IKEA Indonesia did all the process of foreign exchange transactions manually. The company needs to submit all documents related to transactions via email to the bank. Then, those documents will be reviewed by the bank before moving to the next step.

If, in the midst of discrepancy process, it is found that there are incomplete documents, then the bank will inform customers to complete them immediately. Then, the customers will complete the documents and send them again through email.

All steps were done through communication by phone or emails. “So there are a lot of emails related to supporting documents, and also calls with the bank,” he said.

During that manual process, customers are also unable to monitor the progress within the bank. “After submitting the documents then moving to the discrepancy process, the customer doesn’t know how far the process has progressed, whether the transaction can be executed today or not,” Hardy explained.

Not to mention when customers want to do foreign exchange transactions, first they need to confirm with the bank about the exchange rates. The same applies for booking rates, the customers still need to confirm with the bank manually by phone.

Now imagine if there are dozens to hundreds of foreign exchange transactions that must be processed within a day, it would be time consuming and a waste of energy to do transactions that could actually be more efficient if a solution is available.

The UniTransact Platform from HSBC Indonesia becomes a smart solution that helps ease cross-border transactions. All processes that were previously done manually, time-consuming, and less efficient, become simpler and easier.

In 2022, IKEA Indonesia has decided to use the UniTransact service from HSBC. The UniTransact Platform helped IKEA Indonesia to process foreign exchange transactions with its suppliers around the world more easily and more efficiently.

“UniTransact integrated platform has complete features, starting from upload documents, settlement of discrepancy, exchange rates are displayed real-time thus foreign exchange trades could also be done real-time, shown in a comprehensive dashboard so we could see both transactions that have been done as well as ongoing transactions. All processes are integrated and makes it easier for us to make foreign exchange transactions,” Hardy explained.

UniTransact developed under HSBC’s major platform, HSBCnet, which aimed at simplifying and unifying customers’ interactions across various banking functions, when customers make cross-border transactions.

Customers who have been using UniTransact, including IKEA Indonesia, have experienced a number of benefits.

First, Comprehensive Dashboard. A comprehensive dashboard allows customers to see summary of all cross-border payment transactions, inwards as well as outwards.

Second, Enhanced Visibility. Customers are able to see detailed and real-time status of transactions throughout the life-cycle of all the cross-border transactions, from beginning to the end, in one platform.

“As a customer, we could see how far the payment process has progressed, because this platform gives alerts or notification on the exact status of transactions. For example, once discrepancy is done, customers can move to the next step of foreign exchange trade. Once FX rates have been booked, we will receive another notification showing that the bank continues the process. Therefore, we gain end-to-end visibility of our transaction journey,” said Hardy.

Third, Online Discrepancy Resolution. No more piled up emails and repeated calls. Discrepancy resolution can be done through online two-way communication with HSBC team, both to give additional information or clarifications.

Fourth, Efficient Management of Documentation. Customers are able to upload, store, and retrieve documents for any transactions as needed. Not only one, customers are able to upload multiple documents with no limitation or maximum size of documents that can be uploaded. The only limitation is on the size of one document, which is maximum of 20 MB.

Fifth, Seamless Booking of Multiple FX trades. Customers can monitor FX rates real-time through the UniTransact platform and can directly book FX rates to execute transactions. Such convenience helps avoid human error in determining the desired FX rates for transactions.

“Before we use the platform, we had to ask [the bank] for FX rates, then lock it and process it. There could be human error during the process. Now with UniTransact, as a customer, we can directly book FX rates as we want. Once we click, it will automatically get processed, therefore minimizing errors in terms of FX rates,” Hardy explained.

Hardy and his team at IKEA Indonesia, have experienced all the advantages of the UniTransact platform. “Process in the treasury department has become more efficient both in terms of time and human resources. It’s more convenient and practical,” he added.

The experience of using the UniTransact platform, which has proven to help ease business processes at IKEA Indonesia, has made Hardy confident to recommend the new service from HSBC Indonesia to the other businessmen.

“I recommend this platform because so far, as a customer, I have experienced more simplified, faster, smarter, and efficient seamless banking experiences,” said Hardy.

References:

• PWC: Five issues for private businesses to focus on in 2023
• HSBC UniTransact
• www.ikea.com
• www.ikea.co.id