Working Capital Improvement

Helping an MNC meet its financial obligations 

Challenge

A multi-national corporation employed us to undertake a review of their composition of net working capital (NWC), including business awareness of the issues. 

Solution

By undertaking a company-wide in-depth financial review, we were able to present the Board with our recommendations on improvements to NWC and cash flow management and reporting formats. This also included changes to incentives for NWC performance.

Results 

Following our review, the new reporting format was rolled out, along with our innovative new incentive scheme for NWC performance. This was supported by a global communications plan and the development of country-by-country action plans.

The company’s NWC decreased over 4 consecutive years, resulting in a cumulative 9% point reduction.