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Working Capital

Releasing cash through operational improvements

All businesses need cash to operate and survive – whether to fund suppliers, employees and fixed costs or to invest in new assets, markets or products. During difficult times, strong focus on working capital frees up cash to be used for growth activities or weathering the storm.

Effective working capital management is also key in good times and it’s easy to lose sight of the benefits when the pressure is released. Working capital is the most rapid and controllable source of improved shareholder value.

Our clients have seen success in excess of their goals through implementation of operational process improvements – diligent financial practices, and vendor and contractor management.

Releasing cash from working capital opens up internal capabilities to: pay back debt, pay out dividends, fund pension obligations, invest in capital equipment or research and development, fund internal improvement initiatives or acquisitions.


Our process is to “operationalize” each component of working capital:

  • Accounts payable and accounts receivable
  • Inventory
  • Customer collection and management
  • Vendor and contractor management
  • Fast cash
  • Supply chain financing
  • Working capital management
  • Procurement
  • Order to cash
  • Forecast to fulfill
  • Procure to pay

Clients achieve results through implementation of a customized plan based on their need, however our past approach has included actions such as:

  • Introduced methodology for DSO measurement & performance metrics that support corporate strategy
  • Moved from multiple pay runs per week to once per week
  • Reduced most of the early payments to vendors
  • Consolidated terms
  • Emphasized the importance of obtaining additional vendor discounts vs. extending terms
  • Instilled proactive approach – prioritized tasks and key performance indicators
  • Delivered workshops and drove dedicated focus
  • Increased visibility of disputes, resolved root causes of issues and garnered support from Sales organization
  • Improved and streamlined planning tools have enabled better supply chain performance
  • Reduced constraints via improved stock planning for each location
  • Introduced global inventory reporting available by product, region and days of supply (DOS)
  • Insured joint ownership of process by business unit and procurement


Some of the results our clients have achieved include:

  • Measurable results tied to organizational goals
  • Reduced payment frequency added to WC balance & reduced cost
  • Reduction in early payments largest impact in improving liquidity
  • Early payment terms of 2%10N30 = 91 days of float
  • Reduced in days sales outstanding (DSO)
  • Reduced overdue percentage from 35% to 25%
  • Reduced 90+ day balances from $2.2M to $286K
  • Reduced unapplied cash to $650K
  • Inventory improvement have contributed $10.8M to the cash conversion cycle
  • Surplus inventories identified and target removals accomplished

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