Citi Client Casebook Middle East and Africa 2022

Driving Growth and Operational Efficiency 48 The Challenge Sanofi Aventis were seeking to enhance their collection methods so far handled via two different manual channels: • 43% via standard check payments (a prevalent payment method in Algeria) • 57% via bank draft, an onerously manual payment method. Through this enhancement Sanofi Aventis wanted to simplify their collection process through an automated solution whilst simultaneously removing all manual internal processes converting the 57% of their collections from a bank manual draft method to an automated collection “Direct Debit”. The biggest challenge was to encourage Sanofi Aventis clients to shift their payment method from the bank manual draft method to an automatic transfer, handled by Sanofi Aventis itself, via the Direct Debit solution. The Solution The process involved during this implementation was as follows: • Converting Sanofi Aventis customers to Direct Debit. This represented 69% clients from the 80% of the collection volume representing a total of DZD 750 MM capturing those flows electronically instead of manually. • A quicker and smoother reconciliation through the daily MT940 flows, this is reflected on Sanofi Aventis’ statement. Rather than having three different accounting entries for each bank draft, only one accounting entry is reflected, representing the amount credited to Sanofi Aventis and highlighting the total concerned bills. When the payment is rejected, regardless of the underlying reason via the Direct Debit solution, the notification is received on D+1 instead of D+20 when it comes to the previous bank draft payment method. • Instead of making 15 payments for each invoice using the previous method, with the Direct Debit one payment can include the total invoices which facilitates and reduces the time spent in the reconciliation process. The Results The Direct Debit solution enabled Sanofi Aventis to enhance its customers’ payment methods. It has been fully customized to meet the needs of Sanofi Aventis and its clients thus enhancing their funding process from end-to-end. Key Benefits • The solution was fully customized to meet Sanofi Aventis needs and objectives. • The solution helped to better manage and monitor the deadline payment on SAP, optimizing the management flow generated from invoicing step to posting one. • 100% online web-based solution connected in real-time to company ERP’s system. • Fully accessible to clients 24/7, resulting in better customer experience. • Fully automated: transaction takes just a few minutes and a few clicks versus a week through the previous process. • Reduced usage of credit facilities through better monitored and faster collections. • Improved visibility, reconciliation, and control over collections. • Minimized operational risks by reducing the use of other paper-based collections. Sanofi Aventis and Winthrop in Algeria Automated Collections enhanced via a Digital Direct Debit Solution Sanofi Aventis and Winthrop (a subsidiary of Sanofi) are leaders in the pharmaceutical sector within Algeria, particularly in the field of oncology, the central nervous system, thrombosis, cardiology, diabetes, internal medicine, and vaccines. Sanofi Aventis has been present in Algeria for almost 31 years, they employ around 900 people.