- Headline

Control and management of the financial position in times of crisis

- Client

An International mechanical company living a lack of internal competences

- Work performed

The implementation of the group financial reporting has been the basic assumption to design a funds flow planning model to keep under control the working capital needs of the mother company and the local branches. In order to reduce the overall financial needs we started by reviewing the debt conditions to align them all to an internal benchmarking; then, we worked on the supply chain front to eliminate what ‘went wrong’ : intensive accumulation of safety stock in several phases of the process, management of customer orders driving to slow moving or obsolete stock creation.

- Results achieved

Thanks to our engagement, the company reduced the average cost of current debt of 2% , while the average days/stock have been reduced of approx. 20 days. The overall working capital performance increased of 15% as well as the current net financial position, which improved of 10%.

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