Finding cash in your business

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.

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.

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.

€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%.