Technical services

Working capital reduction through integrated daily execution

BUSINESS CONTEXT

  • ~800m€ entity of technical services company with 3 BU’s serving various market segments.
  • Company is not meeting it’s working capital (WC) requirements and benchmarks.

CUSTOMER NEED

  • Implementation of Operational Excellence (Lean Six Sigma) as stated in the company’s strategy.
  • Significant and sustainable reduction of working capital.
  • Improved project control.

RESULTS

  • > 70% multi-m€ reduction of working capital.
  • Identification of next level of working capital drivers addressed by Lean Six Sigma projects.
  • Alignment of working practices across BU’s.

CHANGES

  • Standardised ERP practices.
  • Clear operating rules (cash planning, invoicing, customer specific actions).
  • Installation of KPI’s dashboard.
  • Improved invoicing behaviour.
  • Optimized payment terms.
  • Clear guidelines for Sales and Project Management.

R&G APPROACH

  • Deep data-analysis to understand drivers of WC.
  • Implementation of IDEX for invoice lead times & AP.
  • Coaching of Operational leadership in IDEX.
  • Focus on deviations from planned due dates/lead-time.

CLIENT TESTIMONIAL

“My role has clearly changed through the implementation of Operational Excellence. It has become more process-facts driven and challenging based on new data insight”

Company GM