Cash Management
Identification and quantification of potential cash improvements in your operating cycle that can be achieved by putting in place a durable working capital reduction plan are provided by a strong cash management team. Once the « quick wins » to free up cash have been implemented (customer delays, inventory, suppliers, factoring), your company is eager to find new sources of liquidity to finance the growth of your business by improving your working capital cycle, strongly linked to operational processes
The fundation of sustainable cash flow improvement lies on: Identifying and delivering sustainable cash flow improvements from operations, policies, processes, people and systems.
CASH MANAGEMENT
Visibility
Control
Forecast
Culture
Accurate rolling cash flow forecasting
Implementation of cash driven budgeting process
Expenses approval process
Clear roles and responsibilities and ownership of cash
Release cash from short term financing (Factoring, overdraft…)
Bank accounts management (cash pooling)
CREDIT MANAGEMENT
Ageing balance
Quick wins
Cross functional
Cash conversion
Releasing trapped cash and cleaning the balance sheet
Cross functional meetings to focus on converting aged into cash
Multi dimensional ageing balance (by client type and geo, product line…)
Understanding of clients cash behavior, contract review
Cash Marathon to free up short term cash
WORKING CAPITAL
P2P: Purchase to pay
Forecast to deliver
Order to cash
Invoicing performance
Flash diagnosis of potential working capital improvement
Normalized working capital (structural cash requirement to finance operations)
Implementation of working capital reporting systems
Stock optimization (coordination planning and commercial forecast)
AS A RESULT…
Increase of liquidity
Decrease of short-term debt
Smaller working capital
Stronger P&L
Stakeholders' satisfaction
Increase of valuation
