Working Capital Optimisation
We redesign days sales outstanding, days payable outstanding and days inventory outstanding to shorten your cash conversion cycle
Working Capital
Optimisation
Our team frees the cash that sits trapped in your operations by working across receivables, payables and inventory, the three levers that drive the cash conversion cycle. We bring finance, operations, procurement and sales together under one working capital forum with monthly tracking, so that days sales outstanding, days payable outstanding and days inventory outstanding are managed as a single connected number rather than fought over in silos.
Our implementation model
We fix the standards that apply to your site before we open at working capital diagnostic, and we do not close at cross functional governance until they are met.
Measure current working capital, DSO, DPO, DIO, cash conversion cycle, benchmark against industry top quartile.
Optimise receivables, credit policy, invoicing speed, collections discipline, customer payment terms negotiation.
Optimise payables, supplier terms negotiation, payment timing discipline, supply chain financing programmes.
Implement inventory optimisation per ABC / XYZ classification, demand driven planning, postponement strategy.
Monthly cash conversion cycle tracking, quarterly working capital review, integration with treasury and FP&A.
Working capital governance involving finance, operations, procurement, sales, KPI cascade to functional leaders.
Working Capital in full scope
Value of Working Capital Optimisation
- You carry less hazardous and perishable inventory and less exposure with it
- Functions work to a shared discipline
- Supplier relationships are managed with care
- Customer relationships are managed with care
- Your working capital controls satisfy Sarbanes Oxley Section 404
- You can give investors a clear cash flow story
- You stay within your lender covenants
- Your commercial terms are defensible under audit
- We typically shorten the cash conversion cycle by twenty to fifty days
- Sales and operations planning runs with real discipline
- Customers and suppliers are brought into alignment
- Operating cash flow rises
- Cash is released directly back to the business
- Your interest costs fall
- You avoid a dilutive equity raise
- Your cost of capital improves
Codes & standards we work to
Triggers that signal the need
Where Working Capital Optimisation applies
Tangible deliverables
- A working capital diagnostic
- A receivables, payables and inventory plan
- A cash conversion dashboard
- A cross functional governance design
- A monthly review pack
- Integration with treasury and financial planning
Send us the scope
We will scope Working Capital Optimisation against your site and come back with what it would take. Tell us where the process is losing time, yield or margin.