This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Case Studies

Our team has supported the delivery of working capital initiatives in a range of situations across the following industry groups:

Oil & Gas   

The client
A division of a major oil company was looking to sustainably release cash from accounts receivable as part of a wider cash agenda, with the group as a whole needing cash to meet a dividend requirement.

The issue
The division was revenue- and profit-focussed, with an underdeveloped cash culture.

Our service
Deloitte identified a 30% improvement in working capital. Process capability improvements were identified and a cash culture was developed and embedded into the organisation.

 

Back to top

Media  

The client
A multinational business providing its clients with a broad range of business services and information.

Our service
Worked with central and local management to identify and deliver improved working capital and cash management.

The result
Restricted cash decreased by 15% across the global organisation through the implementation of robust, short-term cash flow forecasts, complemented by a refined treasury management processes.

Back to top

 

Life Sciences      

The client
A global generic pharmaceutical producer with multi-billion turnover.

The issue
Working capital was identified as a low-cost source of funds to invest in growth, but releasing cash from working capital had proven difficult due to multiple businesses and geographies and autonomous local management teams.

Our service
Deloitte identified and agreed plans for the achievement of a 23% reduction in working capital. It then transferred ownership and capability to local management teams in order to ensure sustainability.

 

The client
A global generic pharmaceutical producer whose accounts receivable and credit risk were identified as an area of both opportunity and concern in their annual strategic review. The client had an ongoing focus on growth and margin, with minimal focus on cash and working capital.

Our Service
We completed a rapid desktop review to prioritise opportunities by country and completed reviews of major country businesses within the group.

The result
We supported business in achieving 30% reduction in accounts receivable and introduced cash mindset across the organisation to support sustainable cash release from working capital.

 

The client
A pharmaceuticals company with $1 billion turnover and a high cash burn rate.

Our Service
Deloitte performed company-wide cash and working capital analysis, focussing on quick wins. This was followed by a series of targeted working capital improvement initiatives.

The result
Deloitte significantly improved the visibility of ongoing cash and working capital requirements.

Back to top

 

Steel  

The client
A European supplier to the automotive sector, with an annual turnover of £2bn.

Our service
Deloitte upgraded the client’s cash collection and dispute management processes, with no additional resourcing costs incurred.

Our business-driven approach to cash collection and dispute management was based on credit risk and working capital priorities.

Primary and secondary segmentation tools and processes based on customer payment performance and credit risk.

Back to top

 

Business Services   

The client
A Spanish subsidiary of a leading B2B organisation.

The issue
The client wished to reduce its outstanding receivables balance.

Our Service
Deloitte worked with country and regional management to identify poor receivables performance at a customer level and develop a series of tailored approaches to reduce overdue debt.

We installed a receivables performance monitoring process which enabled the pro-active identification of deteriorating performance.

The client achieved a 15% reduction in accounts receivable within the Spanish market.

Back to top

 

Consumer Business  

The client
One of the world's leading brands, with production and sales and marketing operations across the globe.

Our Service
Identified and prioritised 46 working capital initiatives and developed achievable implementation plans.

The result
$460 million improvement in working capital over a three-year period, with an associated increase in customer service and decrease in supply chain costs.

Back to top

 

Packaging  

The client
As part of the overriding importance of cash in this private equity-owned business, Deloitte were engaged to support the generation of cash from working capital as well as through other cost reduction initiatives.

Our Service
Deloitte undertook extensive quantitative and qualitative analysis on accounts receivable, accounts payable, and inventory.

The result
A €5.7 million benefit potential was identified in accounts receivable and € 24.3 million in accounts payable by implementing variable frequency payments, unilaterally extending payment terms for non-strategic suppliers, eliminating early payments, and introducing pro-active and prioritized collection procedures.

Back to top

 

Chemicals  

The client
A pan-European chemical distributor with total sales of over €1 billion. The client had an entrepreneurial culture and focused on its sales and margin.

The issue
Working capital was used to fuel growth, with the result that Net Working Capital as a percentage of sales deteriorated from 13% to 16%.

Our Service
Deloitte identified an opportunity to improve Net Working Capital as a percent of Sales by 5%, by introducing leading practices in each country division of the company.

Deloitte designed immediate initiatives to deliver rapid performance improvement and medium-term initiatives to consolidate initial performance wins.

Back to top

 

Manufacturing 

The client
A global diversified engineering company with £1.4 billion turnover.

Our Service
Deloitte conducted pre-deal working capital performance and a process review.

The result
Deloitte identified an opportunity to reduce accounts receivable  and inventory by between £42m and £61m. The process also highlighted some potential risks around the existing management of creditors in relation to lengthy payment terms and minimal stretch potential.

 

The client
A UK- and Ireland-based manufacturer and supplier of pipe systems and related services.

The issue
The client had a revenue- and margin-focused sales culture. It needed to develop a cash agenda and install a sustainable approach.

Our Service
Deloitte developed short-term initiatives to reduce the level of risk in meeting cash covenant requirements. To do so, we reviewed its accounts receivable, accounts payable and inventory management performance and processes.

Back to top

 

Retail  

The client
An international retailer.

The issue
The client needed to release cash from working capital in order to help fund its international expansion.

Our Service
Deloitte reviewed the client’s payables performance, identified underlying drivers and developed a series of initiatives to improve performance. We facilitated a management review session to decide which payables initiatives to take forward and which to address at a later date.

We reviewed the working capital requirements for the client’s overseas franchise partners and tailored franchise agreements to minimise the working capital investment.

The result
A 17% increase in payables  was identified without adversely impacting supplier relationships or costs.

Back to top

 

Utilities 

The client
A major UK-based water company looking to improve its collection of cash and incidence of bad debts.

Our Service
Deloitte reviewed and validated the client’s existing performance improvement initiatives in both the domestic and commercial customer segments.

We identified the need for further enabling initiatives for data accuracy, revenue assurance and dispute management, in addition to the need for more robust delivery assurance and project management.

We installed a robust approach to achieving sustainable 1.5% bad debt to revenue performance target  and generating £40m cash improvement with contingency initiatives and agile project management.

Back to top

 

Telecoms    

The client
A Global telecommunications group with a £ multi-billion annual turnover.

Our Service
We developed and managed a series of working capital reduction initiatives. We also implemented a short-term cash forecasting approach.

The result
Cash conservation greater than £300 million in three months, combined with increased cash.

Back to top

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options
Follow:

Get in touch

More on Deloitte