Rapid Cash Release

Are you fit for survival ?

In the current recessionary climate, access to capital is extremely limited. Cash has become the top priority, with many companies suffering from a poor cash position. Given the time lag between taking action and releasing cash, the time to act is now. With a consensus to prepare for 10-30% revenue reductions, do you have the expertise to unlock the cash in your business to survive?

Rapid Cash Release Programme

It’s a fundamental of good business practice
Links Operations explicitly to Cash Generation
Frees up trapped cash in your business operations
Helps “recession proof” your business
Instills a cash mentality within your company’s operations
Is self-funding within the project lifetime
Combines Analysis and Implementation from day one

Integrated Performance Management

Where there is not a critical solvency issue, but the business needs to free up cash, we have the Rapid Cash Release programme, which can form the initial phase of our overall performance improvement framework.

Analysis & immediate action
Wider implementation
Strategic change, growth and renewal

Area

Quick Wins / Actions

Saving

Accounts Receivable

(% of total AR)

· Establish control with credit management office

· Use Pareto approach to recover large account

· Factoring

· Fast track to fix ‘order to cash in the bank’ process

10 - 25%

Inventory

(%of total inventory)

· Sale off immediately slow moving and obsolete stock

· Stock finance

· Return inventory to suppliers when possible

· Basic boost of productivity to reduce WIP & create FGI

10 - 35%

Accounts Payable

(% of total AP)

· Establish control with payable management office

· Use Pareto approach to review/delay/stop payments

· Financing from supplier (stock financing)

· Renegotiate existing debt and payment terms

10 - 25%

Pricing

(% of total revenue)

· Improvement of low profitable SKUs & customers

· Eliminate low performing customer or SKUs

· Limit and control sales process affecting gross margin

5 –

10%

CAPEX/Asset Management

(% of total unsecured assets)

· Quick assessment of asset value and level of utilization

· Stop capex & dispose non-core assets, whenever possible

· Operational consolidation to free more assets

10 - 20%

OPEX

(% of total costs)

· Use ‘what if scenario’ to cut costs wherever possible

· Stop all discretionary and non-core costs

· Suspend all external parties in non core areas

· Workforce rationalization

10 - 15%