Improving Cash Flow

($1.2 Billion provider of engineering, information technology and staffing services )
Challenge:

This Firm was experiencing cash flow challenges due to a high level of accounts receivable.


Some symptoms included:

  • Upstream processes were contributing to some of the process inefficiencies and the amount of rework required.
  • There was no single version of the “truth” relative to critical business data.
  • Significant, on-going efforts were required to service low margin accounts.
  • Problems were not being managed from an end-to-end perspective.
Highlights:
  • Flowcharted and analyzed the Order to Cash process end-to-end.
  • Followed a data-driven approach including:
    • Defining the problem and targets.
    • Measuring the current performance of the OTC process.
    • Analyzing OTC’s performance data with the intent to identify root causes.
    • Designing improvements to address the root causes.
    • Institutionalizing the changes made.

Outcome:

Within 12 months, the cumulative impact of all the improvements resulted in:

  • Reducing the length of the billing process from 6 to 2 days.
  • Reducing the outstanding AR balance by 33%.
  • Improving the cash flow by 30%.

Managing cash during uncertain times is critical. This free Ebook provides insights for you to consider.

ECM Consulting Group | United States