• Alexander Proudfoot Alexander Proudfoot

    MENU
    Proudfoot designs, implements and accelerates operational transformation - realizing tomorrow's results today. More About Alexander Proudfoot
  • Working Capital

    Cash is King

    Many executives recognize how the efficient management of working capital can drive shareholder value. Financial engineering is a short-term solution. However, sustainable working capital improvements require changed behaviors.

    Typical Results

    Results you can count on
    What we can help you achieve

     

    • Increase in cash flow 5%
    • Reduction in payment mistakes 60%
    • Reduction in past due accounts 21%
    • Inventory reduction 23%
    • Obsolete inventory reduction 38%
    • Reduction in process cycle times 40-50%
    • Reduction in days on hand 10 -40%
    Additional resources

    What We Do

    Your partner for rapid sustainable change
    Helping companies elevate operational and financial performance

    The business world today confronts many challenges associated with working capital. We leverage our leadership in operational design and execution to help our clients achieve more in a shorter period of time than they would on their own.

    • Transforming operational performance
    • Our overarching project methodology
    • Root cause analysis
    WORKING-CAPITAL-WWD-TX1We work across accounts receivable, accounts payable and inventory control to improve operational performance by leveraging existing assets more effectively.
    WORKING-CAPITAL-WWD-TX2We remove barriers to change, arming people with the tools, skills and behaviors they need to create employee ownership. Our methodology involves continuous process improvements, heightened governance and performance, and increased organization and transformation to help our clients maximize their  performance.
    WORKING-CAPITAL-WWD-TX3A rigorous root cause analysis of challenges across all sectors helps identify and correct operational constraints that restrict cash flow. Continuous review and study of processes allows us to identify areas that require immediate attention and, consequently, deliver rapid, measurable and sustainable change.

    Client Results

    What our clients say
    "We wanted our employees and leadership to be masters of their own destiny. This is what Proudfoot promised and delivered. Our employees owned and created the change themselves."
    Chief Executive Officer - Insurance company
    "The constructive and results-oriented approach was crucial in helping us achieve our objectives. We highly recommend Alexander Proudfoot as a business partner."
    Chief Executive Officer - Manufacturing Company
    Project results - successful past projects
    • Accounts receivable
    • Accounts payable
    • Inventory
    • Cash flow
    Objective: Over the course of a three year period, executives of a leading business services company began to lose control of their cash flow due to rapid growth from multiple acquisitions. They made the mistake of focusing solely on revenue and profit, instead of working capital. The executive team wanted to address the drivers and root causes that were responsible for the company’s inefficient accounts receivable and collections practices. However, due to the more than 140 P&Ls they were operating at the time, their fact finding task became too complex and seemed insurmountable without outside assistance.

    Approach: Operational issues coupled with a lack of performance visibility were primary reasons for instability in cash flow that needed to be addressed at the root cause level to enable cash flow stabilization and predictability.
     
    Results: $166m in cash flow benefits and an empowered internal team to maintain disciplined, data-driven focus and a proactive approach towards cash management.
    Objective: Our client, a retail bank, felt that there were disorganized operating procedures related to accounts payable and wanted to formalize planning and scheduling in order to offset additional costs. He wanted to restructure the area, increase productivity, reduce rework and equip the team with better tools and more skilled people.

    Approach: Resources were aligned to demand needs through better planning and execution of daily tasks. Sources of rework were identified and addressed, in particular, the definition of roles and responsibilities.
     
    Results: Productivity improvements of 21% were achieved. The standardization of the procedures led to quicker identification of potential delays and enhanced employees' abilities to address reoccurring problems. Managers and supervisors responded well to the trainings and requested sessions on hidden lost time for all employees.
    Objective: Challenged by rapidly rising input costs, an automotive supplier needed to better manage inventory as a means of bolstering its margins and competitive positioning. It targeted a reduction in inventory returns of 22%.

    Approach: A combined client-Proudfoot team identified existing weaknesses and pinpointed how to overhaul the current ways of operating to establish a best practice in inventory management. The team strengthened employee knowledge, skills and capabilities and provided the tools required to better manage plant-wide inventory. Part of the solution involved working with purchasing and procurement, as well as production and logistics.

    Results:Within weeks, the company was leaner, more productive and cost-efficient. The installation of the new tools and best practice approach challenged the mindset of the existing employees, established a greater sense of accountability and positive workforce behaviors. The impact of the project consisted of a €14 million inventory reduction, 33% reduction in inventory returns and improved working capital.
    Objective:Profitability was a major concern for a global construction, engineering and energy equipment firm. The stock price had recently taken a negative hit which was interpreted as a potential liquidity problem. The company was particularly interested in facing challenges in their accounts receivables department.

    Approach:The joint Proudfoot-client teams categorized receivables and assigned responsibilities to dedicated teams. A global, standardized escalation policy was implemented to ensure all necessary management resources are leveraged to resolve existing past due AR problems. A standardized cross-functional communication structure was implemented to proactively resolve potential AR problems.

    Results:
    The client was able to achieve a $57M reduction in past due AR which exceeded the target of $38M. In addition, the integration of AR performance and status data for global units into a set of standardized top management reports increased alignment and visibility.

    Areas of Impact

    Expertise across all operations
    Alexander Proudfoot has more than 70 years of experience delivering operational results across various industries and operational areas. Allow us to tap into this knowledge to help you maximize your operations.
    • Manufacturing
    • Insurance
    • Life Sciences
    Alexander Proudfoot’s specializes in operational and financial improvement through disciplined execution, enabling our manufacturing clients to achieve their growth, revenue and profit goals with greater speed, predictability and control.
    Whether you represent life, accident and health, or property and casualty insurance, Alexander Proudfoot partners with all insurance institutions to achieve strategic, operational and customer-focused objectives through disciplined execution.
    Alexander Proudfoot has completed projects around the globe with many of the world’s leading pharmaceutical, medical device and medical service companies. Through these engagements, Proudfoot has a wealth of experience solving problems that are unique to the life sciences industry.
    Other Areas
    • Management effectiveness
    • Purchasing
    • Stock control
    • Inventory
    • Accounts receivables
    • Accounts payables
    • Procurement
    • Supply chain
    • Order entry
    • Installation
    • Customer service
    • Benchmarking
    • Project management
    • Organizational re-alignment
    • Customer relationship management