How Kingspan’s Cut Monthly Netting Time by 90%
As rising transaction volumes pushed the limits of Kingspan’s spreadsheet-based netting process, the treasury team needed a way to scale without adding risk or headcount. By leveraging the netting functionality in its existing TMS, the company cut monthly processing time from three days to three hours.
The challenge
With operations in 80+ countries, Kingspan is the global leader in high-performance insulation and building envelope solutions. But as the company expanded, its treasury team faced growing pressure from an intercompany netting process that had outgrown spreadsheets.
“Each month, netting was taking two and a half to three days,” recalls Andrew McParland, Group Treasury Manager. “We’d gone from email submissions to SharePoint forms and then Power Apps, but we’d outgrown the patchwork. It just wasn’t scalable.”
Transaction volumes were rising, manual formats were prone to error, and reconciling settlements across multiple currencies and ERPs had become increasingly complex. “Something had to change – especially with the business still expanding into new territories,” he adds.
The solution
Rather than layering on another system, Kingspan embedded netting directly into its existing Salmon TMS. That meant full integration with cash, FX, accounting and reporting – all within one data environment.
“Having netting functionality as part of the TMS meant no duplication, no confusion, and no reliance on external spreadsheets,” says Alyson O’Reilly, Treasury Systems and Projects Manager. “It gave us one source of truth.”
Following three rounds of testing, the new process went live in January 2024. Business units submit data via Power Apps and this is imported into the TMS. Netting runs on a set time every month.
The benefits
The impact was immediate. Kingspan cut its monthly netting cycle from up to three days to just three hours – a 90% reduction. At the same time, transaction volume more than doubled to 130 per month, with no additional resourcing.
“We want those volumes to keep increasing,” McParland notes. “It means more of the business is using the tool – and despite higher volumes, the effort required has decreases.”
The system also brought broader gains in control, compliance and visibility:
• Cleaner processing. Intercompany settlements are no longer processed as proxy FX trades. Data is structured, referenced and validated.
• Real-time FX visibility. Treasury can now run a report and place spot trades or hedges within the hour, replacing manual exposure calculations.
• Simplified reconciliation. Consistent references and automated accounting simplify matching in MT940s and ERP systems.
• Local transparency. PDF reports give business units a clear view of balances and reduce queries.
• Policy enforcement. Units without a relevant currency account must use netting. Internal audit and trading restrictions ensure compliance.
With each new acquisition, Kingspan has made netting a standard part of its treasury playbook. “We introduce it as part of the onboarding process,” says O’Reilly. “Alongside cash management, FX, Trade Finance, Credit cards – it’s a core treasury service.”
To support global expansion, the team has also embedded jurisdiction-specific requirements directly into the system. “French thresholds, UAE formats and more – it’s all in the files,” McParland explains. “That’s helping us scale smoothly.”
Underlying all of this is a strong focus on data discipline. Static data is now centrally managed to ensure accuracy. “The real work is in the setup,” McParland notes. “If your mappings or defaults are off, everything slows down.”
The changes haven’t just been technical, though, they’ve shifted how the team works. “Netting used to be a nearly a full-time job,” McParland reflects. “Now we complete the netting process, execute any FX, and move on efficiently and in a timely manner.”
And with new entities being added regularly the system continues to scale. “We’re adding new entities all the time – and we’re not worried,” says McParland. “In fact, we’re looking forward to seeing even further efficiencies. That’s the definition of success.”
Keen to gain the same visibility, control and scalability?
Speak to Salmon Software to learn how integrated netting can support your growth and simplify your intercompany flows.