Working Capital Transformation
Our Working Capital Transformation approach objectively identifies the root issues, is outcome focused and is designed to be light touch on the organization. We help clients increase cash flow, reduce operating expenses and boost investor returns by optimizing how accounts receivable, accounts payable and inventory are managed.
Typical Challenges in Managing Working Capital
- Clear understanding of all roadblocks and root causes tying up cash
- Defined policies and processes that enforce good behavior when making decisions that affect cash
- Bandwidth to deploy actions against process gaps and maximize efficiency of working capital
- AP, AR and Inventory teams appropriately structured to address highest impact areas via efficient use of tools
- Defined targets with KPI’s and metrics to hold all areas of the company accountable
Our Approach
Visualize historical performance, benchmark trends and size opportunity levers across payables, receivables and inventory.
Review working capital process maturity, personnel and policies to identify the root cause of issues and the optimal team structure.
Develop a prioritized set of opportunities and a roadmap of actions to close process gaps and improve working capital.
Improve working capital processes by implementing effective policies, developing tools that boost efficiency, and targeting the largest drivers of cash flow.
Implement KPIs and metrics to measure performance and establish a regular cadence of alignment across all functions that affect cash.
Visualize historical performance, benchmark trends and size opportunity levers across payables, receivables and inventory.
Review working capital process maturity, personnel and policies to identify the root cause of issues and the optimal team structure.
Develop a prioritized set of opportunities and a roadmap of actions to close process gaps and improve working capital.
Improve working capital processes by implementing effective policies, developing tools that boost efficiency, and targeting the largest drivers of cash flow.
Implement KPIs and metrics to measure performance and establish a regular cadence of alignment across all functions that affect cash.
Value Delivered
- One-time increase in cash flow typically equivalent to 5-9% of revenue
- Tools to quickly assess and quantify working capital challenges & opportunities
- Objective view supported by experts of what an optimized future-state should look like
- Increased free cash flow from quick wins in 1-3 months
- Optimized process for your organization that streamlines workflow
- Visibility & Accountability through metrics and reporting
