Management of legal entities and bank accounts within LVMH
SPECIFIC NEEDS DUE TO THE MULTIPLICITY OF BRANDS AND STRUCTURES
The company must have a single, organized banking authority capable of overseeing all gains and losses, from the global level to the level of each store. There must therefore be a single reference authority for all banking functions, including responsibility for signing loans, purchases and debts; a hierarchy of powers from the Board of Directors to the operational level; a clear and precise understanding of the various Houses that groups together the company with a supervision of internal factors, audits and reference best practices.
By its very nature, LVMH must be able to rely on a centralized view of authorizations for all its banking needs.
Since the tax rules are not the same from one country to another, it is vital that all documents and letters can be prepared and automatically generated by each employee of the Treasury team. This requires the implementation of a streamlined BAM (Bank Account Management) systewm for all processes and exchanges within the group. Internal reporting must include all necessary resolutions and files, while external reporting must cover all correspondence with the various parties and shareholders, all of which are automatically generated and sent by the BAM function – in preparation for the eBAM platform .
VISUAL SIGN, THE NEW SOLUTION SELECTED BY LVMH TO MEET ITS DIFFERENT NEEDS
The company now has a centralized electronic access covering all the concerned entities and meeting all its banking needs, including their legal and HR
Some administrative procedures remain necessary, but they are fully supported by the system that manages relations with the concerned banks and institutions, generating the corresponding documents in Windows and Adobe PDF formats. These procedures deal in particular with contracts, confirmation of new banking sectors, opening and closing of accounts on demand.
The BAM process is implemented on both the internal banking system and within the banks with which LVMH currently carries out daily banking in different countries.
The current rate of deployment in the different Houses is well suited, and all levels of governance are satisfied with the transparency, development, implementation and structure of the BAM system. The ease of use of the interface is particularly highlighted and certainly contributes to the excellent rate of adoption of the solution by the users.
LVMH is continuing its deployment by implementing a specific architecture that meets the needs of its brands. eBAM functionalities are at the heart of these new deployments. The management of the bank accounts of eBam was clearly a good choice for LVMH. It meets the needs of the company which wanted to streamline the processes of its Treasury Department to prepare for the future.