Working Capital Improvement

Optimising net working capital metrics of Pan-Asia business through increased financial efficiency 

Challenge

The Pan- Asia organisation had barely focussed on net working capital (NWC) metrics and requested us to help it operate at full capacity. 

Solution

Following a deep-dive into the composition of all elements of NWC, we identified areas of inefficiency. This led to an improvement in credit control policies and processes. It also enhanced alignment between inventory holding periods and supplier’s payment terms, along with product profitability and product portfolio reviews. We then implemented a comprehensive reporting system across all NWC components.

Results 

Our expertise led to the company reducing its NWC over 4 years, with a cumulative 6.5% point reduction.