CFO Studio Magazine - Curt Allen, CFO, Subaru

28 WWW.CFOSTUDIO.COM 1st QUARTER 2015 N ew technologies, currency fluctuations, and political shifts mean that most multinational organizations have to stay agile in their approach to global sales and supply chain management. Creating strategy in the face of change impacts finance executives as well. At a recent CFO Studio Executive Dinner at The Capital Grille in Paramus, NJ, CFOs and other financial executives gathered to discuss how they deal with the financial aspects of global sales and supply chain optimization under current global conditions. Bank of America Merrill Lynch was promotional partner for this event. CFO Studio and Real Estate Strategies Corporation hosted the evening. Claude Draillard, vice president of finance for Dassault Falcon Jet, a wholly owned subsidiary of Dassault Aviation, led the discussion. Dassault Falcon Jet sells and supports business jets throughout North America, South America, and the Pacific Rim countries of Asia, including China. Draillard began the dinner discussing some of his experiences with global sales and supply chain issues that often land on the CFO’s desk. Draillard spoke about Dassault Falcon Jet’s service center in Brazil. The center has 15 technicians and $2 million worth of parts and was opened to service South American customers. While sales and customer support teams have benefited, the center poses many challenges to the U.S.-based finance department. “We don’t exist without the operations so the question is howmuch complexity do we have to handle and how does finance support the operation while keeping compliance with our rules regarding tax and customs questions,” said Draillard. This kicked off a lively discussion that frequently drew on Dassault Falcon Jet as a case study to understand various strategies global organizations can implement. Questions of Currency Many of the participants also had experience working with Brazil. According to Draillard, the business climate in Brazil today is similar to what it was in Europe 30 years ago. He went on to explain that in Brazil, companies don’t issue an invoice. Instead, you, the seller, key your information into the government system and the government sends the invoice to the customer. This sparked questions from the guests about handling currency issues. EricWukitsch, chief operating and financial officer of Vantage CustomClassics, Inc., a branded apparel company in the promotional products industry, commented on how this system complicates bearing the risk of currency. Dassault, for example, gets parts from Europe, assembles planes in the U.S., and sells and supports those aircraft in countries all over the world. With a single plane, Dassault can deal with three or more currencies. David Solomon, executive vice president and CFO, Edison Properties, LLC, asked how Draillard protects his margin. Dassault Falcon Jet bills Global Sales and Supply Chain Optimization CFOs meet to discuss the importance of strategy and innovation in today’s global businesses BY DARIA MEOLI CFO STUDIO EXECUTIVE DINNER SERIES PROMOTIONAL PARTNER: L. to R.: Daniel Prevoznak, Peter Dontas, Claude Draillard, Andrew Zezas, Michael O’Brien, Russ Lopinto Photography: Jibran Aslam