Strukton takes a step-by-step approach to building a future-ready treasury function

When Strukton began professionalising its treasury processes in late 2021, financial operations across the organisation were highly decentralised. Divisions and countries operated largely independently, with information spread across different systems and spreadsheets. As a result, there was no single, consolidated overview of cash positions, bank accounts and financial risks.

Since then, Strukton has made significant progress. Following a treasury assessment, the further development of its treasury function and a comprehensive system selection process, the organisation implemented Nomentia, a central Treasury Management System (TMS), in collaboration with Orchard Finance. This has laid the foundation for greater visibility, standardisation and further automation.

Establishing a central treasury function

The collaboration between Strukton and Orchard Finance began in late 2021, when Orchard Finance was asked to assess the existing treasury environment and advise on establishing a professional treasury function.

The need was clear. Treasury activities were largely managed locally across the various countries and business units. Consequently, the organisation lacked a central overview of bank accounts, cash positions, credit facilities and guarantees.

“The organisation was highly decentralised. The different countries operated largely independently, and there was no central treasury function. The initial assessment was intended to give us a clear picture of the banks, accounts and treasury activities across the group,” explains Rick Polhout, Treasury Analyst at Strukton.

Strukton wanted to gain greater visibility into where funds were held, how liquidity was developing and where corrective action might be needed.

Four recommendations to further professionalise treasury

The treasury assessment mapped the existing processes and resulted in four interconnected recommendations.

The first recommendation focused on formally establishing the treasury function. Roles and responsibilities across Treasury, Controlling and Accounting needed to be more clearly defined. Treasury also needed to become more visible within the organisation and develop into a business partner for the Business Units and Executive Board.

In cash management, several priorities were identified: creating a transparent banking and account structure, improving cash visibility, establishing accurate cash flow forecasting and introducing greater automation.

The third recommendation was to select and implement a Treasury Management System. This system would serve as a central source of information for bank accounts, credit facilities, guarantees and other treasury activities.

Finally, management reporting needed to be improved. Up-to-date information on cash positions, guarantees and credit facility utilisation would support management in making informed decisions on liquidity, risks and investments.

The assessment therefore served primarily as an important starting point. Not every recommendation was implemented immediately, but the report provided a roadmap and a clear vision for the years ahead, outlining what was needed to strengthen the treasury organisation structurally.

Getting the fundamentals right first

Following the assessment, Strukton initiated several improvements. The number of bank accounts was reduced, communication between entities in the different home markets improved, and efforts were made to enhance cash flow forecasting.

However, as the treasury function continued to develop, many processes still relied on manual files. Information was collected in various Excel spreadsheets, and working methods differed across the organisation.

“We had the basics in place, but much of the work was still manual, with information spread across different files,” says Anders Meijer, Group Director Corporate Finance and Treasury at Strukton. “To manage treasury effectively, you need reliable and consistent information. At that point, we still lacked sufficient visibility.”

Strukton deliberately chose not to implement a system immediately after the assessment. The financial foundations, forecasting capabilities and internal organisation first needed to be strengthened. Only then would the company be ready to take the next step.

From business case to TMS selection

In 2024, Strukton concluded that a central Treasury Management System (TMS) was needed to achieve further optimisation and standardisation. However, the team had no previous experience in selecting and implementing a TMS.

Building on the existing relationship, Orchard Finance was brought in again to support the process. Orchard Finance helped Strukton structure the selection process, from defining requirements and preparing the Request for Proposal (RFP) to shortlisting suitable vendors, evaluating system demonstrations and comparing proposals.

“We knew what we wanted to improve, but we had never selected a TMS before,” says Rick Polhout, Treasury Analyst at Strukton. “Orchard Finance brought valuable market knowledge and helped us understand what to look for, which providers would be a good fit and how to compare the different solutions effectively.”

The selection was not about choosing the system with the most extensive functionality. Strukton was looking for a user-friendly solution that matched the maturity of its treasury function while offering sufficient flexibility to support future growth.

Nomentia meets Strukton’s requirements

Strukton ultimately selected Nomentia. According to the organisation, the solution offered the right balance of functionality, flexibility, ease of use and total cost over the system’s lifecycle.

A key consideration was the management of bank guarantees. Guarantees play an essential role in Strukton’s day-to-day operations. Nomentia made it possible to incorporate the entire workflow, from application and approval through to registration and receipt of the guarantee, and tailor it to Strukton’s processes.

Another important factor was the ability to make data available for existing Power BI reports. Strukton had already developed its own reporting environment and wanted to integrate TMS data into those reports rather than become entirely dependent on a separate reporting platform.

In addition, the licensing model allowed Strukton to extend the use of the system across the organisation without immediately incurring additional licence costs for every new user.

“Nomentia was a good fit for the stage our treasury function had reached,” explains Michiel Stoop, Junior Treasury Analyst at Strukton. “Some other systems offered more functionality, but they also included features our organisation did not yet need. Nomentia was practical, flexible and capable of growing with us.”

Managing an implementation involving multiple stakeholders

Following the selection process, Orchard Finance’s role shifted from advising Strukton to acting as implementation lead for Nomentia.

Because the same team had been involved in the selection process, Orchard Finance already had a thorough understanding of Strukton’s requirements and the intended system configuration.

During implementation, Orchard Finance focused primarily on project management, monitoring outstanding actions and coordinating activities between Strukton, Nomentia, the banks and other stakeholders.

“A TMS implementation involves many different parties. Some banks respond faster than others, and technical connections can sometimes prove more complex than expected,” says Anders Meijer, Group Director Corporate Finance and Treasury at Strukton. “The direct communication and weekly follow-ups helped us maintain visibility into progress and outstanding issues.”

Bringing technology and processes together

An important part of the project involved integrating Strukton’s various ERP systems. Under a conventional approach, each ERP system would be connected to Nomentia individually. Instead, Strukton and its in-house IT specialists opted for a different architecture.

A single central integration was established using a middleware solution, allowing the various ERP systems to connect through a common interface.

Although this approach required additional coordination and technical effort during implementation, it provides a more efficient and manageable infrastructure in the long term.

According to Strukton, this demonstrates that implementing a TMS involves much more than simply installing software. Treasury, IT, consultants and the software provider all play an essential role. If any of these stakeholders are not sufficiently involved, successfully delivering the solution becomes considerably more challenging.

An important lesson was therefore to involve the IT and Procurement departments early in the selection process. This ensured that technical capabilities, security requirements and integration considerations could be addressed from the outset.

Building a foundation for the next phase

A substantial part of Nomentia’s cash management functionality has now been configured. Payments are becoming increasingly centralised, and Strukton has gained greater visibility and more consistent processes.

In the coming period, following the completion of several ERP migrations, the systems in Sweden, Italy, Denmark and Belgium will also be connected. The integration of the Italian banks is also planned.

The current system provides the essential foundation for the next phase. Strukton is exploring opportunities to further support treasury processes, introduce additional automation and potentially establish an internal cash pool in the longer term.

“For us, Nomentia is an enabler, not the final destination,” Strukton concludes. “Now that we have a stronger foundation in place, we can continue taking the next steps in developing our treasury function.”

Direct communication and market expertise

The collaboration between Strukton and Orchard Finance now spans several years. Beyond the individual projects, the two organisations remain in regular contact to discuss developments within Strukton and the wider treasury market.

Strukton particularly values the direct communication, market expertise and opportunity to exchange ideas informally about emerging developments.

“After working together for several years, you get to know each other well, which makes communication easy and efficient. Orchard Finance understands the market and helps us translate developments into what they could mean for Strukton,” says Rick Polhout, Treasury Analyst at Strukton.

Esther Goemans-Verkleij, Partner Treasury at Orchard Finance, adds:

“This collaboration clearly demonstrates that professionalising treasury is not a one-off project. We started by assessing the organisation and its processes. In the years that followed, we supported Strukton in selecting and implementing a TMS that met its needs. With this foundation now in place, the treasury function can continue to evolve and deliver increasing value to the organisation.”

What began as an assessment of a highly decentralised treasury environment has developed into a broader treasury transformation. With a more clearly defined treasury function, greater centralisation of information and a scalable systems foundation, Strukton is well positioned to take the next steps towards stronger financial control, increased automation and a more strategic role in supporting the organisation.