A Fortune 100 transportation services company with declining days sales outstanding (DSO) and days payable outstanding (DPO) metrics over the last few years recognized an opportunity to improve its O2C and P2P processes to drive cash benefits in order to reduce debt, lower interest costs, and fund growth. An initial assessment identified more than $1 billion in working capital opportunities, and Deloitte’s Cash & Working Capital team worked closely with the client on numerous pilot programs to help it implement leading practices across the O2C and P2P cycles.

A $60 million US SaaS company, owned by a private equity firm, was in the process of combining five different acquired businesses into one organization. Deloitte performed the working capital assessment and subsequent implementation phases across the O2C and P2P cycles and leveraged tactical and customized tools, templates, checklists, and reporting metrics to assist the company’s team in executing process improvement initiatives. We helped establish weekly “Cash Council” calls to discuss key performance indicators (KPIs), progress, and follow-up action plans. $5.4 million in total working capital improvement opportunities were identified, $3.9 million for O2C and $1.5 million for P2P. A total of $2.8 million was realized from the opportunities identified over three months.

A $2 billion multinational specialty manufacturer of electronic devices was facing working capital challenges due to the decentralized nature of its organization. Reporting processes and data were not centralized, limiting management’s visibility for effective sales and operational planning and its ability to make structural improvements for material requirement planning and inventory management. We improved the sales forecast to production planning by unit to improve forecast accuracy and identified and cleaned up slow and obsolete inventory. A total of $42 million was realized over four months.