Finding cash in your business

Client team

European Division of materials distributor with €3 billion in sales.
The selected businesses were in Switzerland, Germany, France and Holland.
A team of experienced total working capital consultants supported by off site technical expertise.

The business had undergone a period of acquisition and expansion and lacked consistent processes to manage working capital with local variations at most sites.
They wanted to identify key areas of performance improvement, at selected companies, build a leading practice “Tool Box”, develop and implement action plans and then roll out internally.

Role

Review TWC at 5 businesses, confirm improvement, identify and develop a leading practice “Tool Box”, implement and develop action plans with the selected businesses within 4.5 months.

Activities and Deliverables

2 week reviews at each business confirmed local scope and requirements, including quick wins.
Presented results locally, gained buy-in and agreed actions.
Developed “Tool Box” of working capital leading practice for key elements of SCM, OTC and PTP including price/discount negotiation tool, cash targeting tool, GMROI tool and TWC metrics.
Documented processes to support “Tool Box”.
Completed local implementation at 5 businesses and developed action plans.
Transferred methodology to Working Capital Champions for internal roll out.

Results

Working capital for the Division €170 million lower than prior year.
Quick wins paid for programme at 5 selected businesses
Processes operating well and delivering consistent performance .
Repeatable process in the “Tool Box” enabled replication for other businesses.
The initiative recognised as the kick start to get working capital process improvement underway.

Future Actions