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Client team

  • A 25 branch Austrian building materials division with over €200 million of sales.
  • A cross skills team, German speaking, on and off site team combining leading supply chain and order to cash expertise. Deployed part time to fit client’s requirements.

Project aims

  • Restore confidence and working capital performance after recently implemented JD Edwards system.
  • Identifying and delivery of leading practice working capital processes and configuring the new system to build trust and effective use across the supply chain.

What we did - our role and activities

    Role

    • To understand the root issues and design required for processes & systems configuration, then develop, implement and document best practice.

    Activities and Deliverables

    • Completed in depth analysis of SCM, stock management, and ordering activity to identify gaps and cash flow opportunities.
    • Analysis of customer debtor performance, structure and impact for effective receivables management.
    • Worked with HQ systems developers to identify and correct system configuration issues – acting as a bridge between systems and company.
    • Delivered revised processes and reporting to direct and drive down slow and obsolete stock, optimise ordering and stock management and establish a target oriented collection process with an effective dispute resolution function.

Successes

  • €13 million debtor and stock reduction delivered. A €2 million reduction in stock provision – helped exceed profit and working capital targets.
  • Detailed training and process guides established with stock and debtor cash targets.
  • Developed receivables , stock ordering and management procedures and introduced at client training academy.
  • Business moved to full adoption of ERP to drive and control SCM.
  • Working capital reduced from 14% to 11% over project.
  • Stock provisions lowered by 40% and gross stock down by 23% year on year.
  • Overdue debt down by 56% and over 90 day debt down from 21% to 4%.