Working Capital Reduction

Managing Working Capital is critical to success for any company.  Whether working to turn a business around or managing for growth, companies need to consider how to limit the cash needed for the business.  Optimizing inventory, AR and AP to minimize Working Capital frees up cash for other requirements - capital improvement, investment, or just managing the business.

Typical Engagement

To attack Working Capital, it often helps to understand where you are vs your peers - ChesOps can build comparisons to help company leadership fully understand where they stand in all of the different aspects of WC, then formulate a targeted plan to action. As shown in the example below, the starting point of this journey was to understand their current state and acknowledge that there was significant opportunity for improvement.  With this understanding, we were then able to attack all of the levers to generate a big win for the company.  The company realized $100 Million Working Capital reduction in just 9 months (vs a 2-year target) - enabling redeployment of the cash into acquisitions, capital improvements and an overall improved balance sheet.