REL in the Press

September 15, 2015 (Fr), "Working capital optimisation is improving across large European organisations"

In French. Working capital required decreased by more than two days in 2014, shows a study from REL Consulting.

September 3, 2015
Finance Monthly (UK), "What next for working capital in Europe"

Derrick Steiner, a senior manager at REL Consultancy, a division of The Hackett Group, tells Finance Monthly about the future of working capital in Europe. (Page 20)

August 27, 2015
Treasury Today (UK), "Working capital: have you been taking the easy road?"

As the European economy starts to return to growth, the 17th edition of REL's Working Capital Survey analyses practices of the 1,000 largest publicly trading companies by revenue in Europe. The results show that corporates continue to be divided between making the most of cheap debt and optimising their internal cash generation. Treasury Today talks to Derrick Steiner, Senior Manager, REL Consultancy, on what should be learnt from the study.

August 20, 2015
Financial Director (UK), "Debt is King: REL Working Capital Survey 2015,"

Companies in Europe have more cash on hand than ever before, with cash up 6% from 2013 and 62% over the past seven years. For the 947 non-financial public companies features in the REL 2015 Working Capital Survey, cash on hand at the end of 2014 had risen to €800bn (£566bn).

July 23, 2015
Wall Street Journal, "Guest Voices: Managing Supply Chains is Intertwined With Financial Management,"

MIT's Jarrod Goentzel and James B. Rice Jr. say effective supply-chain managers also are managers of working capital.

July 20, 2015 (UK), EU Companies: Focus on Cash Flow Before It's Too Late

European companies have more cash on hand than ever before, and are outpacing their American counterparts on working capital management. But their reliance on debt may spell big trouble in the long run.

July 14, 2015
Treasury & Risk, "Working Capital Efforts Stalled,"

Companies' efforts to improve their working capital seem to be lagging. NACHA's recent decision to provide same-day settlement of ACH transactions should be a plus going forward for working capital at companies that use ACH to make payments or that receive a lot of consumer payments via ACH. However, a couple of recent surveys suggest that over the past year companies made little headway in freeing up more of their cash through receivables, payables, or inventory. Consulting company REL's annual benchmarking of working capital at 1,000 large corporations showed there was no change last year in the average organization's cash conversion cycle, a measure of the time it takes a company to recoup the money it spends producing goods by collecting from its customers.

July 9, 2015, 2015 Europe REL working capital survey

In 2015, REL have developed the measure of working capital performance with the use of the Cash Conversion Cycle. REL will be turning 40 this year, and as the world's foremost cash flow experts we continue to lead the way in Working Capital management.

July 6, 2015, 2015 REL Europe Working Capital Survey Highlights Europe's €1.1 Trillion Opportunity

The survey analyses the accounts of the 947 largest EU companies this year.

June 25, 2015
MyPurchasingCenter, "What Have We Learned from the Great Recession?,"

When it comes to cash management, have companies learned anything since the Great Recession? Are they prepared for an increase in interest rates? Derrick Steiner, Management Consultant with REL, raises these questions as he walks My Purchasing Center through results of the new REL/CFO Working Capital Survey. REL is a division of The Hackett Group.

June 22, 2015 (FR), Working capital is increasing for big European companies

In French. An article looking at the findings of REL's 2015 European working capital survey.

June 21, 2015
Essentials of Corporate Finance, "2015 Working Capital Survey,"

CFO just published the 2015 working capital survey by REL Consulting. The 967 large U.S. companies included in the survey had $1.0541 trillion in excess working capital. However, low interest rates appear to have led to a level of apathy in working capital management as very little improvement has been seen in the past year. Overall, the companies in the survey have increased total debt by 62 percent since 2007, and the cash balance at these same companies reached $932 billion, a 74 percent increase since 2007. Even with cheap debt, days' sales outstanding increased by one day, from 37.4 days to 36.4 days, although much of this was a one-time improvement in the gas and oil industry.

June 19, 2015
Supply Chain Management Review, ""Debt is King" For Many Top Players in Today's Global Supply Chain,"

In today's business world, the old adage "Cash is King" is being replaced by "Debt is King," according to the results of the 17th annual working capital survey from REL a division of The Hackett Group, Inc.

June 16, 2015
Automobil Industrie (DACH), "German companies don't use liquidity optimally,"

In German. The current European Working Capital by REL, a division of The Hackett Group, study shows that German companies manage their working capital insufficiently. In spite of their European market leadership German automotive OEMs and suppliers could tap much greater potential.

June 15, 2015

In´┐ŻFrench. Advice and insights on improving the monitoring and compliance of late payments by REL's Adil Lahlou.

June 10, 2015
CFO, "Barely Working,"

The availability of cheap debt has reduced companies' incentive to improve working capital management, according to the results of REL's annual U.S. Working Capital Survey.

June 9, 2015
Wall Street Journal, "Firms Struggle to Boost Efficiency Measure,"

Executives often gauge a company's efficiency by measuring how long it takes the business to convert its investments in plants, research or supply chains into cash. The shorter the time frame, the more efficient the company. As a whole, 967 of the largest nonfinancial public U.S. companies in the U.S. have improved only slightly on that score, according to consulting firm Hackett Group. In fact, the data call into question whether companies have gotten more efficient since the recession.

June 6, 2015 (UK), Five Levers for Optimising Spare Parts Inventory

Many organizations have made great strides in optimizing their operational inventories. Top performers, though, create significant working capital and cost opportunities by optimizing their spare parts inventory. Our experience shows that applying five fundamental elements to managing spare parts inventory, in the correct sequence, can help companies realize cash and other benefits of up to 15% of inventory value. A bylined article by REL's Dan Georgescu and Julian Atherley.

May 14, 2015
IDG Expert Network (DACH), "Treasury as A Cross-Divisional Function for the Cash Culture,"

(In German) Cash forecasting and visibility have become more important in treasury in order to support companies' operative divisions. But there are problems to be overcome.

May 7, 2015
IDG Expert Network (DACH), "Eurocrisis: Setting the Course in Good Time,"

(In German) It is still questionable as to when the EURO turmoil can be mastered. But there are some measurements with which companies can safeguard against extreme currency fluctuations and uncertainties of recent years.

April 24, 2015
Channelpartner online (DACH), "Possible Savings in Supply-Chain-Management,"

(In German) In managing their liquidity companies focus strongly on receivables and payables. But in doing so efficient leverage often is neglected: A high-capacity supply chain supported by optimized logistics.

April 24, 2015
IDG expert network (DACH), "YoYo effects must be avoided"

In German. Bylined article by Jonas Schoefer. The effort by many companies to hectically reduce working capital at year end often results in negative effects, and builds up again quickly. This problem can be eliminated.

April 21, 2015
Working Capitalist Forum (UK), "Terms and endearments: Managing the balance sheet and supplier relationships,"

As companies seek to improve their working capital, suppliers may be seen as an easy target. Better tools and strategies can bring the interests of finance, procurement and suppliers into closer alignment.

March 23, 2015
Treasury & Risk, "Shining a Light on Receivables"

With higher interest rates approaching, treasurers will continue their efforts to improve working capital management. At this point, the biggest opportunities are on the receivables side.

February 12, 2015
Times of London, "Supply Chain 2015 Supplement: Tale of Three Sectors"

Many of the issues facing today's supply chain professionals are common across industries and sectors. Every organisation has to cope with various degrees of supply chain-related risk and ensure they are sourcing responsibly. Buying and delivering products at the right price is essential across all sectors, while closer supplier relations make sense in most industries. Yet there are differences. The impact of online shopping and the delivery of these goods have challenged the retail sector, while others experience pressures around cost, risk or lead times. The impact of new technology, big data and the internet of things will also vary.

February 4, 2015 (UK), A rewarding journey on the road to automation

A bylined article by REL Associate Principal Guy Cabeke - Despite clear advantages, adoption of e-invoicing is still quite rare. This is largely due to misconceptions around the investment in technologies required and the perception of low ROI.

February 2, 2015 (UK), Seven Solutions for SMEs in Tackling Late Payments

A bylined article by REL's Jonas Schoefer - Delaying payments is a common tactic taken by large companies when trying to ease cash flow. However, it can lead to an array of problems for the supply chain; specifically small and medium-sized suppliers. This article explores the impact of this practice and provides advice for firms affected.

January 23, 2015 (UK), A Profitable Route through Supply Chain Finance

A bylined article by REL's Jonas Schoefer - Optimising working capital, supply chain stability and help for the company's suppliers are just three of the ways in which supply chain finance (SCF) can benefit the treasury department. This article also examines the mechanics of SCF.

REL in the Press – 2014

December 31, 2014
US Cellular Backing America's Backbone, "Staying Liquid"

For small business owners whose sales cycles are cyclical, such as in the construction, retail and professional services industries, managing working capital is key to increasing cash flow and staying liquid. Prime time to examine your affairs is during the off-season, when you are not so focused on sales and delivery. Get your senior team together and focus on tracking four areas: cash coming in, timing and terms of payments, cash going out and inventory. You will be building a solid foundation for improving your working capital and avoid unnecessary fees due to late payments or interest on borrowed cash. With insights from The Hackett Group's Analisa DeHaro.

December 1, 2014 (UK), Capture the Elusive Unbilled Receivables

Bylined article by Guy Cabeke, associate principal of REL, a division of The Hackett Group.

November 11, 2014
Treasury & Risk, "Wake-up Call on Credit-Card Fees,"

Credit cards are being employed in more and more business-to-business (B2B) transactions. From the seller's point of view, that can mean a lot of money walking out the door in credit-card fees.

November 7, 2014, "The Case Against B2B Credit Card Payments,"

B2B companies spend an average of $2.2 million in credit card processing fees for every billion of revenue, according to new research released, but the company suggests this in an avoidable burden.

November 6, 2014
Credit Card Fees: A Growing and Largely Avoidable Burden For Business-to-Business Companies

Credit card processing fees present a growing burden for many U.S. business-to-business (B2B) companies, according to new research from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT), and companies can significantly improve their profit margin by changing acceptance policies for credit cards.

October 30, 2014
CFO, "Cost-Saving Idea: Don't Take Credit Cards,"

Credit card processing fees on business-to-business transactions have become a significant cost for companies, according to new research from REL Consulting, a division of The Hackett Group, which recommends that organizations reduce fees by changing their acceptance policies for cards.

October 29, 2014
PYMNTS, "Credit Card Payments Taking Off in B2B Payments,"

Although credit card payments represent barely 10 percent of all B2B payments that number has doubled in the past two years, according to a report from REL, a division of The Hackett Group.

October 28, 2014
Wall Street Journal, "B2B Credit-Card Payments Jump,"

The share of U.S. companies that pay their suppliers by credit card has doubled in the past two years. Though paper checks are still the dominant form of payment, an estimated 10% of this year's business-to-business purchases will be made with credit cards, according to REL, a division of Hackett Group.

October 20, 2014
Supply Chain Management Review, "Balancing Financial Settlement and Inventory Levels Remain Key Concerns,"

U.S. companies made only marginal improvements in their ability to collect from customers and pay suppliers in 2013, while showing no improvement in how well they managed inventory, according to the 16th annual working capital survey from REL a division of the Hackett Group, Inc.

October 20, 2014
Supply Chain Management Review, "Balancing Financial Settlement and Inventory Levels Remain Key Concerns For Supply Chain Managers,"

Two new studies indicate that successful innovators in inventory control and banking will gain market share as supply chain "disruption" is addressed.

September 20, 2014
Finanz und Wirtschaft (DACH): "Treasure-Hunt in Balance Sheets: Swiss Companies Release Liquidity and Generate Cash flow"

In German. Nestle keeps its word on working capital. Sulzer enjoys the bounty of their labor. Companies like DKSH, Emmi, Logitech, and others reveal significant working capital progress. In contrast Syngenta has slackened the reins, as did Richmond and the Swatch Group. The performance of Swiss companies runs the gamut in this year's Working Capital survey by consultant REL, a division of The Hackett Group.

September 12, 2014
CFOworld (DACH): "Supply Chain Management: Optimized Logistics as Leverage"

A bylined article, in German, by The Hackett Group's Rainer Drisch. "The possible savings of an efficient Supply Chain is often underrated, particularly if it goes hand-in-hand with optimized logistics..."

September 2, 2014
Procurement Leaders, "Focusing On Payment Can Deliver Value,"

In this guest post, TD Bank SVP and CPO Caroline Booth looks at the possibilities that present themselves to those willing to invest in developing the payment process,. She cites REL's working capital research.

September 1, 2014
Financial Director Magazine (UK), "Sustaining the Focus"

BRITAIN'S largest listed companies are starting to see the fruits of an increased focus on working capital, as costs and debt start to decrease and cash on hand and free cash flow increase. But sustaining working capital improvements still remains a major challenge, according to the 2014 European Working Capital Survey from REL, a division of The Hackett Group.

August 19, 2014 (UK), Considered approach crucial to successful supply chain financing

Bylined article by The Hackett Group's Jonas Schoefer. "Our recent working capital analysis of Europe's largest companies appears to confirm a trend we've seen developing in recent years — growing adoption of supply chain finance (SCF) initiatives."

August 18, 2014
Wirtschaftswoche (DACH), "The Curse of Good Deeds"

In German. A good payment record is normally seen as positive. But in today's economy, other terms and conditions often rule: Positive behaviors can be understood as weakness and so are seen as negative. Major companies in Germany are at a disadvantage to their European competitors because of good payment behavior, according to new working capital research from REL, a division of The Hackett Group.

August 12, 2014 (UK), European firms could improve working capital by almost €900 billion, research finds

An increasing number of businesses are making use of supply chain financing (SCF) which is having a "positive effect on the overall health of supply chains".

August 7, 2014
Treasury & Risk, "Make Your Working Capital Work,"

Working capital management involves balancing a host of tradeoffs. Top companies integrate these considerations into both day-to-day operations and long-term decision-making.

August 07, 2014 (UK), European corporates beat US peers on working capital improvements

Some of the largest listed corporates in Europe are reaping the rewards of concentrating their efforts on managing working capital more efficiently. However, there remain areas where there is still work to be done.

July 31, 2014
CFOworld (DACH), "Good Payment Behavior, bad Data"

In German. German enterprises could not improve their Working Capital performance in fiscal year 2013. The 118 German companies analyzed by REL, a division of The Hackett Group, held their cash conversion cycle unchanged by 44 days in comparison to 44,3 days in 2012.

July 31, 2014
Treasury management (UK), Europe's largest companies reduce debt, improve cash flow as working capital improvements start to pay off

Costs and debt reductions accompanied by increases in cash on hand and free cash flow paint a positive picture, yet a £720bn working capital improvement opportunity remains on the table.

July 28, 2014
FierceCFO, "Working Capital Goes Sideways,"

Low interest rates discourage companies from efforts to improve working capital management.

July 25, 2014
Essentials of Corporate Finance, " 2014 Working Capital Survey,"

CFO just published the 2014 working capital survey by REL, a division of The Hackett Group. The report indicates that the average days working capital decreased only .2 days over the past year. REL's analysis indicates that the 1,000 large U.S. companies included in the survey could reduce payables and receivables by $266 billion and $331 billion, respectively.

July 24, 2014
Supply Chain Management Review, "Working Capital Performance Improves Marginally in 2013,"

U.S. companies made only marginal improvements in their ability to collect from customers and pay suppliers in 2013, while showing no improvement in how well they managed inventory, according to the 16th annual working capital survey from REL, a division of The Hackett Group.

July 22, 2014 (FR), A BFR perfectible encore

In French. The stagnation of the European economy did not prevent large companies in the region from improving days working capital in 2013, according to the 2014 working capital survey by REL, a division of The Hackett Group. 993 non-financial companies from 17 European countries were studied, and a decrease in days working capital of 2% to 39.6 days was shown for 2013 compared to 2012.

July 22, 2014
CFO, "Running in Place,"

The working capital performance of America's largest companies is flat for the third straight year, according to the 2014 CFO/REL Scorecard.

July 21, 2014
CFO, "Company Payables Jump to 46 Days,"

Companies have slowed down their payables from the 35 days they averaged at the end of the recession, according to one measurement.

July 14, 2014
CFO, "Apple, Others Ally with Obama to Pay Small Suppliers,"

SupplierPay, a new White House initiative, is designed to help small businesses increase their working capital.

July 3,2014
DER TREASURER (DACH), "Working Capital: German ompanies do not see a necessity"

In German. Story begins on page 3. German companies did not improve their use of Working Capital in 2013. This shows the current survey carried out by the consultant company REL, a division of The Hackett Group.

June 27, 2014, Six ways to stay ahead in the global supply chain

The influx of industry to low-cost sourcing destinations has brought about infrastructure development in those countries, increasing living expenses and wage expectations. A bylined article by Guy Cabeke of REL, a division of The Hackett Group.

June 13, 2014 (UK), Dynamic Credit and Collections to Slash Bad Debt

A bylined article by Lennox International's Peter Jackson and Randy Dacus detailing how the company improved credit and collections with the help of REL, a division of The Hackett Group.

June 30, 2014 (FR), Large European companies have further improved their working capital

In French. The 2014 working capital study by REL, specialists in working capital optimization, examined the accounts of the largest 993 European companies and found a significant improvement in working capital, with a 2% change in days working capital from 2012.

June 02, 2014 (UK), Cost control: making changes on site is worth it

A bylined article by Roland Schopper of REL, a division of The Hackett Group.

May 22, 2014 (UK), Dispute Management - Nipping the Problem in the Bud

A bylined article by Guy Cabeke of REL, a division of The Hackett Group.

March 05, 2014 (UK), Dash for Cash - No Long-Term Benefit

Public companies often make a 'dash for cash' at the end of the fiscal year to produce a cash flow statement that's suitable for framing when financial statistics are due to be released. They spend an enormous amount of effort trying to meet estimates of yearly performance and there is more at stake than mere window dressing.

March 05, 2014
FD Gameplan (UK), Benchmarking Working Capital: Objectivity Matters, REL Consultancy

FDs are increasingly using scorecards and key performance indicators (KPIs) to benchmark their company's working capital performance internally - and the benefits are clear. Peer-to-peer benchmarking is another valuable tool for finance professionals looking to achieve working capital optimisation, says Guy Cabeke, Associate Principal at REL Consultancy, a division of The Hackett Group.

March 1, 2014
Purchasing Insight, " Analysing indirect spend - the direct way to increase profits - part 1,"

A bylined article by The Hackett Group's Michael Wydra.

January 14, 2014 (UK), "Driving more predictable cash flow,"

REL Consultancy, a division of The Hackett Group, standardizes collection and introduces dynamic credit risk processes to produce significant and sustainable gains in accounts receivable performance for Lennox International - while revenues continue to grow.

December 30, 2013
CFO, "Ten Steps to End the Dash for Cash,"

Bylined article by Dan Ginsberg, Associate Principal at REL, a division of The Hackett Group. "Companies often make a dash for cash at the end of the fiscal year to produce a cash-flow statement suitable for framing. It generally works ... at first. Delaying payments to suppliers, reducing stock levels and increasing collections all make working capital look better for a little while. Unfortunately, most of those gains don't usually last into the first quarter."

December 10, 2013
CFO, "Webinar: Superior Performance in Working Capital Management,"

Dan Ginsberg, Associate Principal with REL Consultancy Group, a division of The Hackett Group, leads this Webinar which looks at how companies have loosened their grip on managing working capital.

November 25, 2013 (UK), Tackling late payment: An overdue consideration

Bylined article by The Hackett Group's Jennifer Pinney. "To effectively tackle late payments companies should first understand the real root cause of the issue."

November 22, 2013 (UK), Fix the roof while the sun is shining

Improvements to working capital became a strong focus for companies back in the credit squeezed aftermath of the financial crisis. But now research seems to indicate that some corporates have taken their eyes off the ball. With the sun soon to set on the era of cheap credit, is now the time for corporates to once again make working capital optimisation a business priority? European companies now have €762 billion tied up in excess working capital, according to recent research by REL Consultancy.

November 18, 2013
Wall Street Journal, "Firms reduced capital spending in the third quarter and kept adding to cash piles, signaling a lack of confidence,"

Investors sifting through third-quarter financial results should be a bit nervous about the future growth of the U.S. economy. Though corporate profits were higher overall, companies slashed their spending on factories, equipment and other performance-enhancing investments by 16% from year-earlier levels, according to an analysis by REL Consultancy for The Wall Street Journal. (Subscription Required)

October 29, 2013
In German. An interview with REL's Paul Moody on the working capital performance of private equity companies.

In German. An interview with REL's Paul Moody on the working capital performance of private equity companies.

October 26, 2013 (UK), £42bn tied up in inefficient working capital by 40 grocery retailers and suppliers

A staggering £42bn is tied up in "inefficient working capital" at the world's top 40 food and drink companies, according to consultants REL Consultancy, a division of The Hackett Group.

October 2, 2013
Moneywatch, "DC's Broke: Companies Have Money -- and Lots of it"

As Washington dissolves into a writhing mess of fingers all pointing at someone else, the government has shut down. And things might only get worse over the federal debt ceiling negotiations, when the country literally could run out of cash to operate. What the public sector lacks, the private has in abundance. Many large corporations are allegedly awash in a sea of cash, and a recent tally claims that the Fortune 50 collectively has $800 billion in offshore profits that are not subject to federal income tax.

October 1, 2013
CFO, "Beware these Corporate Deadbeats,"

Some large U.S. companies had unusually high days payable outstanding (DPO) in their last reported financial quarter.

October 1, 2013
CFO, "Calm, Cool, Collected,"

How HVAC giant Lennox International transformed its credit and collections function.

August 27, 2013 (UK), "REL Working Capital Survey 2013"

Working capital has risen up the agenda of Europe's largest companies, but represents little more than a token effort, finds Richard Crump.

August 2, 2013
Supply Chain Digest, "Supply Chain News: Inventory Performance 2013 Part 2,"

Part two of an annual analysis of 2012 inventory performance by sector, based on data from The REL Consultancy.

July 26, 2013
Supply Chain Digest, "Supply Chain News: Inventory Performance 2013"

Part one of an annual analysis of 2012 inventory performance by sector, based on data from The REL Consultancy.

July 22, 2013
Wall Street Journal, "What Are U.S. Companies Doing With Their Cash? Many Hold It Abroad"

Many big global companies keep three-quarters of their money outside of the U.S., one expert says. Some are stepping up search for M&A targets. (subscription required)

July 9, 2013
Treasury & Risk, "How to Find Cash in Operations"

As debt gets more expensive, here's how to access cash locked up in inventory, receivables, and payables.

July 08, 2013
CFO Insight (UK), "A Balanced Approach to Collecting Overdue Payments"

A guest contribution from REL's Michael Wydra: "Asking for money can sometimes be tricky because businesses do not want to appear importunate. Therefore, it's important to find the right approach to coping with that situation in a sensitive way through clearly defined processes, responsibilities and training. If you get this right, then you can improve the payment cycle without waiting for Brussels to act."

July 01, 2013
Purchasing Insight (UK), "Europe's working capital opportunity - a conversation with REL"

We have highlighted many times the challenges of working capital management. It's become a cliché to refer to the "perfect storm" - the combination of virtually zero interest rates and constrained liquidity that gives both cash rich, large businesses and cash strapped suppliers a headache. But every cloud has a silver lining. Better working capital management provides an opportunity and now, REL, the specialist working capital arm of The Hackett Group, has revealed the size of the prize, in Europe - a total of €762bn is tied up in excess working capital - equivalent to 6 per cent of EU GDP!

June 24, 2013
Treasury Today (UK), "The drive to improve working capital,"

Working capital management has risen up the agenda of large companies during the last year but they are still struggling to convert sales into cash, according to research by working capital consultancy REL. This insight includes a case study by Atlas Copco presented at the EuroFinance Singapore conference in May.

June 13, 2013
Euro Treasurer (DACH), "Treasurers Struggle to Convert Sales into Cash"

European companies are missing out on opportunities to generate cash. A total of EUR 762 billion is tied up in excess working capital at 800 of Europe's largest listed companies, according to consulting firm REL, a division of The Hackett Group.

June 12, 2013
CNBC Europe (UK), "Europe News European Firms 'Sitting on $1 Trillion' in Excess Capital,"

Europe's largest companies left 762 billion euros ($1 trillion) of working capital unused in 2012, the equivalent of 6 percent of the European Union's GDP, according to a report published on Wednesday by the REL Consultancy, a division of The Hackett Group.

June 8, 2013
New York Post, "US firms leave money on table: study,"

Corporate America is blowing cash, big time. Their opportunities to reap more profit from working capital expanded last year by a record $1 trillion, but many of the largest US public companies stumbled badly, according to a new study by REL Consultancy.

June 6, 2013
Working Capital Performance Deteriorates in 2012 As Opportunity at Largest U.S. Companies Now Tops $1 Trillion

The ability of companies to generate cash from operations deteriorated in 2012, as the opportunity for working capital improvement at 1000 of the largest U.S. public companies rose dramatically, topping $1 trillion for the first time, according to the 15th annual working capital survey from REL Consultancy, a division of The Hackett Group, Inc. (NASDAQ: HCKT), and CFO Magazine.

June 4, 2013
CFO, "Still Not Working,"

Working capital performance among large U.S. public companies has improved only marginally over the last two years, according to REL Consulting's annual survey.

June 1, 2013
Treasury & Risk Management, "Working Capital Management: There Goes the Rigor,"

From a corporate perspective, the dark clouds of the recession did have one silver lining: Companies improved their working capital performance. With revenue opportunities stalled, if not declining, organizations enhanced their working capital due diligence, growing margins by taking an ax to days sales outstanding, payables outstanding, and inventory. No sooner did the dark clouds disperse, however, than some companies went back to their old ways of mismanaging working capital, effectively letting go of the rigor. In their eagerness to land new customers, some companies extended payment terms and let inventory levels rise so that they would have enough product in the pipeline and on the shelves to satisfy percolating demand.

June 1, 2013
Treasury & Risk Management, "Back to the Grindstone on Working Capital Management,"

While the recession inspired big gains in the working capital metrics of U.S. companies in 2009 and 2010, since then progress has stalled, according to consultancy REL.

June 1, 2013
Treasury & Risk Management, "Supply Chain Finance Takes Off"

More and more companies are signing on for supply chain finance. The financial crisis is credited with encouraging companies to find ways to balance their need to take longer to pay their bills with their suppliers' need for cash, but the interest continues to grow even as the economy slowly picks up steam. REL's Dan Ginsberg offers insights.

May 31, 2013
Mining Weekly (SA), "SA mining houses' working capital performance improves,"

The overall working capital performance of the largest South African public mining companies improved in 2011/12 and remained near the best levels achieved in the past decade, according to research released earlier this month by global strategic business advisory and operations improvement consultancy The Hackett Group.

May 28, 2013
Wall Street Journal, "The Big Number: $565 Billion: Free-Cash Flow Falls at Big Companies,"

Companies have less cash available for debt reduction, acquisitions, innovation programs and dividend payments this year, says Dan Ginsberg, associate principal at REL Consultancy.

May 28, 2013
CFO Journal, "Capital Expenditures Jumped in 2012,"

Company capital expenditures reached their highest level in at least five years at the end of 2012, as more public firms used their cash and borrowing to fund growth, according to data from REL Consultancy.

April 4, 2013
CFO South Africa (SA) "Jonas Schöfer (The Hackett Group): Freeing up cash from working capital,"

The Hackett Group is a stalwart name in the international business world and has now come to South Africa "to free up working capital", says Jonas Schöfer. He believes that many large South African companies can free up between 10 and 30 percent of their working capital, just by improving the quality of their processes.

March 27, 2013
Financial Director (UK), "Model of instruction: Building a finance team,"

For Sky, the UK's leading home entertainment company and a client of The Hackett Group, creating the best finance team in Britain is a story of the accumulation of marginal gains.

March 25, 2013
Financial Director (UK), "Staying aloft through a product recall"

According to REL's Craig Bailey, the grounding of Boeing's Dreamliner is proving costly to the airplane manufacturer. Working capital management plays a key role in getting through such setbacks.

March 21, 2013 (FR) "Dans le monde du Capital Investissement, l'argent est Roi... mais souvent sur le court terme!"

Byliner by Adil Lahlou, in French, regarding working capital management in private equity held investments.

January 9, 2013
Purchasing Insight (UK), " Working capital management - 10 steps forward, 11 steps back,"

Happy New Year and welcome to Q1. Time to undo all the good work you did last quarter - and a little bit more. Let's hope the shareholders aren't paying attention. REL consultancy published some research last year that showed that on average businesses that play the year end game, on average improve their working capital by 10% in the last quarter of the year only to see it deteriorate by 11% in the following quarter.

REL in the Press – 2012

November 28, 2012
Financial Mail (SA), "Operational Efficiency"

Efficient working capital management can improve cash generation, funding capacity and financial structure. When working capital management is weak or deteriorates, all of these may suffer. For some types of companies, such as those in the construction or distribution sectors, working capital is at the heart of the business. Where management of working capital has been weak or has slipped, improving it can offer great opportunity for enhancing cash generation.

November 28, 2012
Summit TV (SA), "Business Q&A,"

REL Director for South Africa Jonas Schoefer unpacks details on how the working capital performance improved slightly for 160 of the largest South African public companies in the REL analysis, in an interview with South African Business and Financial Journalist Candy Guvi.

October 25, 2012
Supply Chain Digest, "Games with Year End Supply Chain Numbers?"

How many companies play some games in the fourth quarter to make their working capital numbers look a bit better than they really are, including manipulation of some key supply chain related metrics? A new report from REL says quite a few, as it analyzed data from 979 non-financial public companies, finding that in total the group reduced their net working capital (NWC) from Q3 2011 to Q4 2011 by $24 billion, only to let it increase in Q1 2012 by $42 billion.

October 23, 2012
Business Finance, "Gaming the System Is More Trouble than It's Worth,"

A recent study by consulting firm REL, "The Earnings Game: Is gaming the system to meet working capital targets really worth it at year-end?" examines the pressure many companies face to meet analysts' earnings expectations each quarter, as well as the gamesmanship in which some firms engage in order to make their numbers.

October 23, 2012
US Companies Continue to Play Year-End Games With Receivables, Payables, and Inventory

Many large U.S. companies continue to try and "game the system" at year-end, artificially improving their balance sheets by manipulating receivables, payables, and inventory, according to a new study from REL, a division of The Hackett Group, Inc. (NASDAQ: HCKT). Their efforts, which can range from deep discounting and extended payment terms on sales to simply "losing" supplier bills, do have a positive impact in Q4, the study found. But these companies pay a harsh price in Q1, when working capital performance bounces back to even worse levels than before.

October 2, 2012
Wall Street Journal CFO Journal, "Year-End Working Capital 'Gamesmanship' Troubling: Study,"

Nearly half of the largest publicly traded companies continue to report violent working capital swings from the fourth quarter to the first quarter each year, a practice that can mask true performance and set companies up for a cycle of year-end squeezes that damage supplier relationships and efficiency in the long run, according to a recent study by REL, a division of The Hackett Group. (Subscription Required)

October 1, 2012
Treasury Today (UK), "Supply chain efficiency: does it pay to incentivise?"

Four years ago, when the financial crisis was at its destructive peak, companies began using pay incentives to hit working capital targets. Heineken USA, for example, initiated a scheme they called 'Hunt for Cash'. As part of the scheme, departments across the company - finance, treasury, commercial, supply chain, and production groups - each had cash generation incentives built into their pay. The scheme, which was strategically launched in 2007, a year before the crisis hit, gained impetus when the company took on a large amount of debt with its purchase of Scottish and Newcastle in 2008, just as credit markets had begun drying up.

October 1, 2012
Financial Management Network, "Sustained Improvement in Working Capital: Your Challenge,"

Video Interview with REL's Dan Ginsberg detailing results from REL's 2012 U.S. Working Capital Analysis.

August 30, 2012
Financial Director (UK) "REL Working Capital Survey 2012,"

Assuming that the recession will ever comes to an end, the ability to deploy working capital efficiently and effectively will serve as a harbinger of whether UK plc has the agility necessary to capitalise on the upturn when it eventually arrives. A study by REL Consulting of the 1,000 largest listed European groups by sales suggests that the omens are not good. The balance sheets of Europe's top businesses are bloated by billions of euros of excess capital, while billions more are being wasted as a result of inefficient cash management.

August 16, 2012
Supply Chain Management Review, " New Study Says Few Companies Sustain Improvements in Inventory,"

The ability of the largest U.S. companies to collect from customers and manage inventory improved just slightly in 2011, while payables performance worsened, according to the 14th annual working capital survey from REL Consulting, a division of The Hackett Group, Inc. and CFO Magazine.

August 16, 2012
Despite Small Improvement in Working Capital Performance Largest U.S. Cos Now Have a $900 Billion Improvement Opportunity

The ability of the largest U.S. companies to collect from customers and manage inventory improved just slightly in 2011, while payables performance worsened, according to the 14th annual working capital survey from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT), and CFO Magazine.

August 1, 2012
CFO, "Capital Companies,"

Six companies top the REL U.S. 1,000 list in terms of sustained working capital performance: Colgate-Palmolive, Cubic, Cytec Industries, Deluxe, PH Glatfelter, and Watts Water Technologies. These companies either improved working capital performance (days working capital and its three major elements) or sustained it (performance did not deteriorate by more than 5%) each year for three successive years.

August 1, 2012
CFO, "Too Much of a Good Thing,"

It's one of the most important metrics for gauging a company's efficiency and financial health. So when a new survey of 1,000 of the largest public companies in the United States indicates that their working capital continues to be much larger than is considered prudent, that's cause for concern. The annual survey, conducted by REL Consulting, reveals an overall lack of sustained working capital improvement among U.S. companies. After a predictable decrease in working capital during the Great Recession, when companies focused more on the balance sheet, working capital performance has leveled off. ( Scorecard )

July 11, 2012
IndustryWeek, "Forecasts Are Always Wrong, but They Can Be a Lot Less Wrong,"

Companies are learning to rely on solid forecasts, rather than on formal budgets. This article includes insights from REL's Veronica Heald, and data from REL's recent forecasting study.

June 24, 2012
Financial Times (UK), "Poor cash handling takes €800bn toll on European groups,"

Europe's largest companies wasted almost €800bn last year as a result of inefficient cash management, research suggests. A study of the 1,000 biggest listed European groups by sales done by REL Consulting, a division of The Hackett Group, suggests that they relaxed their efforts to improve their internal cash position.

June 12, 2012
International Business Times, "What Happened To Corporate America's Mountain Of Unused Cash?,"

That massive pile of cash Corporate America has been sitting on for years is shrinking, and the reason bodes well for the nation's economy. An analysis by REL Consulting, a division of The Hackett Group, shows that companies are now re-investing in anticipation of growth, with annual capital expenditures up nearly 25 percent in 2011, to pre-recession levels.

June 7, 2012
Financial Director (UK), "Companies failing at WC forecasting,"

Most large companies say they cannot correctly forecast operational basics like inventory, receivables, payables, and the underlying cash requirements to support them, according to REL Consulting.

May 15, 2012
CFO Insight (DACH), "FDs Fail at Working Capital Forecasts,"

Many finance directors at large companies seem unable to correctly forecast their inventory, receivables, payables and underlying cash requirements, a study by REL Consulting finds. The study estimates that Global 1000 companies lose about $2 billion per year due to poor working capital management.

April 26, 2012
Most Companies Fail to Accurately Forecast Working Capital Needs And the Cash to Support Them, Says New Study by REL Consulting

Despite a global business environment where companies can be harshly punished by Wall Street for even small missteps in predicting revenue or earnings, most large companies say they cannot correctly forecast operational basics like inventory, receivables, payables, and the underlying cash requirements to support them, according to the results of a new study from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT).

April 10, 2012
Wall Street Journal, "Unraveling Inventory's Riddle,"

As companies release first-quarter results over the next several weeks, analysts and economists will be keeping a close eye on inventories, seeking fresh insight into business confidence. Companies normally cut inventories at year-end to spruce up their balance sheets, leading to a drop in DIO. But an analysis done for CFO Journal by REL Consulting, part of Hackett Group Inc, shows that the fourth-quarter number remained flat with the third quarter. That suggests that companies held goods in their warehouses when they would typically be selling them off. (Subscription Required)

April 5, 2012
Financial Director (UK), "Emerging markets: Mind the working capital gap,"

A bylined article by REL's Daniel Windauls. THE SOURCE of future growth for many European companies will occur across a set of culturally and geographically diverse countries, which include Brazil, Russia, India, China, Mexico and South Korea (BRICMK). As HMRC figures show, British organisations have increasing exposure to these countries, with growth occurring mostly in manufacturing sectors, which tend to be more working capital intensive. It is therefore becoming increasingly important to study their impact on net working capital (NWC) performance and how companies are managing processes to adjust to this change.

February 1, 2012
CFO, "Mail Crawl: How the U.S. Postal Service's decision to cut next-day delivery will affect working capital,"

The U.S. Postal Service's December decision to decrease the expected standard delivery time of first-class mail to two-to-three days could have a negative impact on companies' working capital. Indeed, the move could cost a U.S. company with $10 billion in revenues up to $100 million in working capital, according to Veronica Heald, a practice leader at REL Consulting, a division of The Hackett Group that focuses on working capital.

January 20, 2012
New Working Capital Performance Study Launched by REL Consulting

A new working capital performance study has been launched by REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT). The study, which examines "Working Capital Performance: Successes, Challenges and 2012 Objectives," is complimentary, and companies are invited to participate.

January 13, 2012
Manufacturer (UK), "Supply Chain Sabotage,"

Brian Shanahan, Associate Principal at REL, explains the strain placed on the supply chain by poor working capital management.

January 11, 2012
IndustryWeek, "2012 Outlook: Cash Is Abundant, but Optimism in Short Supply,"

There's plenty of money in the financial supply chain, but companies are still reluctant to spend it.

January 9, 2012
Inc., "Post Office Delays: How to Avoid a Cash Flow Crunch,"

You may have heard that the U.S. Postal Service had decided to scale back operations and eliminate next-day first-class mail delivery. Then there are continued closings of smaller post offices. According to REL Consulting, a division of The Hackett Group, the elimination of next-day first-class delivery alone will slow customer collections enough to cost a typical large U.S. company up to $100 million a year. The impact on a small company won't be anywhere near as large, but it could still hurt. And if there's post office near a client, sending invoices or receiving payments could become even more difficult. If you rely on traditional mail for your business, here are some steps you can take to help avoid an impact to your cash flow.

January 4, 2012
REL Consulting: Post Office Changes Could Slow Collections, Cost Large Companies Up to $100 Million Annually

The U.S. Postal Service's recent decision to eliminate next-day delivery of first-class mail could cost typical large U.S. companies up to $100 million each year by making it significantly harder to collect from customers quickly, according to new research from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT).

REL in the Press – 2011

December 21, 2011
CFO Webcast, "The Role and Importance of Working Capital in the Planning Cycle,"

How can your working capital needs impact your annual planning and forecasting process -- and how can improving working capital performance can help support your strategic plans in 2012 and beyond. Working capital programs always pique management's interest during times of falling demand and restricted credit markets, but a proactive and focused approach will be required to actively balance the revenue-cash-cost equation and help keep you at the head of the pack as global competition intensifies. Joe Calboreanu from REL Consulting Group explains why working capital should be a key component of all corporate planning programs, and more importantly, why a consistent focus on working capital will be a key differentiator in maintaining your competitive edge. (Access fee required)

December 13, 2011, "Company Cash Hoards Swell by 11%,"

The biggest U.S. publicly traded corporations have been stuffing their already bulging balance sheets with increasing amounts of cash, according to new research from REL Consulting, a division of The Hackett Group. By the end of the second quarter of 2011, in fact, 1,000 such companies were holding $850 billion in cash, or 11% more than they had on hand at the end of the second quarter of 2010.

December 8, 2011
Largest Public Companies Continue to Hoard Cash at Record Levels; 1000 of the Largest Now Hold $850 Billion in Cash on Hand

Large public companies in the U.S. are continuing to hoard cash at record levels, and 1000 of the largest are now holding $850 billion, according to new research from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT).

November 17, 2011
CFOWorld, "Corporate Cash Positions Keep Swelling,"

The average size of cash balances held by giant U.S. companies in this year's second quarter rose 11% over last year Q2 - creating a hoard totaling $850 billion among the 1,000 largest public companies - new research from REL Consulting says. REL, a division of The Hackett Group, based its tally on filings of those top firms during the first half. Overall, the numbers show that as revenue increased, so too did cash on hand kept by companies. The total was $767 billion for the top-thousand companies in the 2010 Q2. However, debt also rose by 7% quarter-to-quarter, which the authors see as an indication that low-cost borrowing is being employed to boost the amount of cash retained by companies.

September 6, 2011
Financial Director (UK), " Working capital bounces back,"

As the recession eases, European businesses are bouncing back with the biggest working capital improvement for five years. But are these gains sustainable, asks REL's Brian Shanahan.

September 5, 2011
BNET, "Bad Corporate Management Is Killing the Economy,"

Another month, another lack of jobs being added to the economy. But what's really astounding is on the financial end, according to the study by CFO Magazine and REL (a division of The Hackett Group). The thousand largest companies in the U.S. sat on a total of $853 billion in cash reserves at the end of 2010, which was a 6 percent jump over 2009, 30 percent more than in 2008, and a whopping 75 percent since 2007.

August 26, 2011
REL Research Shows Largest Companies Hoarding Cash While Small Firms Starve for Capital

The largest U.S. companies are hoarding tremendous amounts of cash at present, in many cases borrowing to do it, while smaller companies remain starved for capital, according to newly-released working capital research from REL Consulting, a division of The Hackett Group, Inc. (NASDAQ: HCKT), and CFO Magazine.

July 27, 2011
Supply Chain Digest, " Inventory Performance by Industry 2005 to 2010,"

An analysis of DIO performance by various industrial sectors by Editor Dan Gilmore, using REL's 2011 Working Capital research as its source material.

July 21, 2011
Supply Chain Digest, "Supply Chain News: Inventory Performance 2011,"

Editor-in-Chief Dan Gilmore, "For the last several years, I have been doing reporting and analysis based on the annual Working Capital Scorecard that had been published by CFO magazine based on data compiled by REL, a division of the The Hackett Group. My work on this has focused on the inventory part of the working capital equation.

July 21, 2011
Spend Matters, " The Sexy Side of Strategic Sourcing: Complex Categories,"

Guest blog from Archstone Consulting's John Yoo.

July 18, 2011
CFO Magazine, "Easing the Squeeze: The 2011 Working Capital Scorecard,"

For months after the Great Recession officially ended in June 2009, the need for cash trumped all else. Today, cash is no longer a problem, as corporate coffers are filled to the brim. But don't be too quick to credit working capital improvement. The 2% decrease in days working capital (DWC) last year qualifies as downright modest, some say, although it is certainly an improvement, given that DWC increased 9.9% the prior year, the worst performance in half a decade. Many CFOs disavow any connection between companies' strong cash positions and an apparent lack of emphasis on working capital. How strong? One thousand of the biggest publicly reporting nonfinancial companies registered an 11.5% jump in revenue last year, according to the 2011 CFO/REL Working Capital Scorecard. (By comparison, revenue dropped by 12.1% in 2009.)

July 13, 2011
Reuters, "Giants hoard cash, small companies 'starve'-study,"

The 1,000 largest U.S. corporations outside the finance sector have used low borrowing costs to build up an $853 billion cushion of cash, but they are hoarding the money rather than spending it, according to a new study by REL Consulting, a division of The Hackett Group, and CFO Magazine.

June 1, 2011
L'Agefi (FR) "BFR major European groups falls to a low of six years:,"

Coverage in French. The need for working capital decreased by 2.7 days of sales in 2010, according to a new study by REL Consulting.

Talking about...effectively creating a Cash Culture

REL's Stephen Loffler explains how Financial Directors can effectively create a cash culture within their organisations. Watch Video

Effective Working Capital II

Starting with payables, receivables and inventories, this Q&A will set out a handful of simple points around which an FD can start to build a strategic approach to one of the most common, least-openly discussed of capital challenges. Watch Video

May 4, 2011
Business Finance, "The Inherent Folly of Cash Forecasting"

From REL Principal Gavin Swindell: Here's a contrarian view on the apparently hot topic of cash forecasting amongst the CFO's agenda. The Hackett Group recently published a survey of CFOs, and 70 percent rated cash flow forecasting as their top priority to be worked upon in 2011. Now, maybe I am being a little simplistic, but I find this strange.

May 1, 2011
Accountancy Age, "The importance of properly evaluating risk,"

Political risk in the Middle East, the tsunami in Japan, poorer than expected growth figures in the UK and elsewhere: modelling business risk in 2011 seems to become harder with each passing week. This white paper details results from an Accountancy Age survey into credit and supply chain risk which demonstrates that, while payment and supply patterns seem to be generally more secure than the during the dog days of 2008, businesses still need to be on alert when it comes to credit and supply chain risk. REL's Brian Shanahan offers his insights.

January 1, 2011
Financial Management (UK), "8 ways to... Improve cash management across your business,"

Having a cash culture in the finance function is useless unless front-line staff understand its importance - and how they affect it. Here are eight ways to get the message across.

REL in the Press – 2010

December 7, 2010
Financial Director (UK), "Making your capital work,"

German chemicals company Altana found itself in a strong position to ride out the recent global economic crisis, as the result of an overhaul to their working capital program promoted by by a shift in company direction in 2007. The company worked closely with the REL division of The Hackett Group to analyze working capital improvement opportunities, and determine how to best take advantage of them.

November 15, 2010
Reuters, "Why America's small businesses are becoming like banks,"

Over two years after the start o f the Great Credit Crisis, banks are still not lending money. But big businesses know exactly where to go for a quick, interest-free loan ... the little guy. Even as corporate profits recover, big companies continue to squeeze their small vendors, stretching out payment terms and writing late checks.

August 23, 2010
Financial Director UK, "Talking about...effective working capital management, Part 2"

Part two of a Webcast with REL (See June 24 below for part one). This part features REL's Brian Shanahan discussing how financial directors can start to build a strategic approach to working capital management.

June 22, 2010
Business Finance Webcast, "Forecasting 2010: Improving Performance with Predictive Cash Flows,"

REL Americas President Mark Tennant and Business Finance Editor in Chief Jack Sweeney discuss research showing how companies struggle to achieve accuracy in cash forecasting, and best practices companies use to identify forecasting obstacles, improve organizational alignment, and enhance measurement and management accuracy.

June 17, 2010
Handelsblatt, "Sticking to the guns after the crisis,"

Indepth German-language coverage of the 2010 REL 1000 analysis of the working capital performance of the largest public companies in Europe. The three articles in this two-page spread focus in part of the performance of DAX companies. The lead story also includes quotes and information from several German companies, including SAP, Bayer, Salzgitter and Klöckner. Separate article in the spread focus on the performance of small- and medium-sized companies in the DAX, and on the performance of German companies in comparison to those in other countries of Europe.

June 14, 2010
Business Finance Video, "Achieving Working Capital Improvements,"

According to a recent study by REL, only 34% of industries posted an improvement in days working capital (DWC) last year, and most companies took a big hit in working capital performance as collections slowed and inventory grew. REL President Mark Tennant outlines some best practices designed to improve DWC, while discussing the study's findings with Business Finance editor in chief Jack Sweeney.

June 4, 2010
Business Finance, "Cytec CFO: Touts Working Capital Elixir,"

Cytec Industries CFO David Drillock speaks with Business Finance Editor in Chief Jack Sweeney about how Cytec achieved $200 million in working capital improvements as part of an aggressive working capital management strategy, accomplished with the support of REL. Recorded last month at The Hackett Group's 20th Annual Best Practices Conference.

June 3, 2010
Dow Jones, "IN THE MONEY: Recession's Fiscal Fitness Gives Way To Flab,"

Corporate America got fiscally fit during the recession. But as the recovery picks up steam, signs are emerging that exercise might have been a passing fad, according to a survey by REL, the working-capital consulting unit of Hackett Group. In the depths of the recession, companies collected debts quickly and strung out payments to creditors, tactics that allowed them to build cash and dodge borrowing. Now, that thrift appears to be reversing. This trend should concern investors because it means companies aren't using their capital as effectively as they could be. In turn, that means companies could be doing better on a host of efficiency metrics--such as return on capital--to which investors should pay attention.

June 3, 2010, "To Cut Working Capital, Try Bonuses,"

Pay incentives for hitting working capital targets proved effective during the recession, although companies are already starting to scale them back, according to REL President Mark Tennant, and the experiences of companies such as Cytec, Allergan, and Heineken.

June 1, 2010
CFO, "Working it Out,"

This cover story package spotlights findings from the 2010 REL/CFO US Working Capital research. While most observers view 2009 as the very heart of the Great Recession, it was also - in terms of working capital - the beginning of the Great Hangover. As 2008 drew to a close and the full extent of the financial crisis became clear, many companies scrambled for cash by pushing down hard on every available working capital lever at their disposal. For them, it was payback time: inventories had to be replenished and overdue bills were finally paid in full. For other companies, those further down the supply chain or with longer cycle times, the full recession didn't hit until late in the year, when unsold inventory swelled, customers lobbied suppliers for longer payment terms or discounts, and those suppliers asked their suppliers for leniency. Either way the result was the same: 2009 was one of the worst years ever for corporate working capital performance. The article also features the working capital improvement initiative of REL client Cytec and their CFO Dave Drillock, along with efforts by Intel, Allergan, Thomson Reuters, and Hughes Communication.

May 27, 2010
L'Agefi (FR), "Global financial crisis had an impact on the Europeans' Working Capital Survey in 2009,"

This article, in the French-language business L'Agefi, details results from the 2010 REL Europe Working capital research, focusing in part on the performance of French companies.

May 26, 2010
FinancialDirector (UK), "Spare Tyre,"

It seems that after a decade of spending, businesses have actually got into the habit of austerity and of saving - but perhaps a little too zealously. The latest study of working capital practices by REL reveals that there is excess capital of €742bn held on the balance sheets of Europe's largest companies by revenue.

May 25, 2010
Business Finance, "Molson Coors CFO Discusses Outsourcing's Pros & Cons,"

Over a period of twelve months, Hackett client Molson Coors outsourced its IT, HR and finance functions - from selection to completion - a feat that transformed and consolidated the brewery's worldwideoperations. At The Hackett Group's 20th Annual Best Practices Conference, Molson Coors CFO Stewart Glendinning spoke to Business Finance Editor in Chief Jack Sweeney about the success and challenges of his company's outsourcing journey.

May 14, 2010
Diversity Executive, "Hackett: Most Supplier Diversity Programs Simply Fail To Deliver,"

While world-class procurement organizations continue to outperform their peers in driving supplier diversity spending, a new study by The Hackett Group Inc. identifies several critical ways that most companies fail in their supplier diversity programs. According to Hackett's research, most rely on overly simplistic measures to evaluate the progress of supplier diversity programs, and never truly assess whether programs are meeting corporate objectives. Most companies also fail to consider whether a few large suppliers or many smaller suppliers best supports their corporate goals.

May 6, 2010
Accountancy Age (UK), "Drop the Debt,"

Tax incentives are needed from the new government to keep interest rates down and reduce corporate borrowing and working capital, according to REL Senior Director Brian Shanahan.

May 1, 2010
Recruitment Matters (UK), "Avoid the Need to Get Heavy-Handed,"

This article on how UK companies can improve collections policies cites REL's research showing that the UK is a "relatively benign payment environment" with typical Days Sales Outstanding (DSO) of 43 days. This compares favorably to the European average of 58 days, the French average of 71 days and Italy's DSO, which is 83 days. Note: Once you click on the link below, the article begins on page 35.

April 21, 2010
Big Fat Finance Blog, "Maximize IT Through Portfolio Management,"

The Hackett Group's research suggests that application portfolio management is the key to a number of good things you want from IT, including improved effectiveness, cost reduction, and better partnering with the business. The trick lies in reducing the number of applications in the portfolio. Top-performing IT organizations, according to Hackett, operate with nearly half the applications per thousand end-users of typical companies.

March 16, 2010
Big Fat Finance Blog, "Even A Recovery Presents Challenges"

It appears that the economy is slowly and painfully inching toward a turnaround. Unemployment is holding steady at 9.7 percent, reports the Bureau of Labor Statistics, and The Bureau of Economic Analysis says that GDP grew at an annualized rate of 5.9 in the fourth quarter of 2009.

It all sounds great. And it is. However, a recovering economy can present its own challenges. Most significantly, if companies don't continue to focus on working capital and cash flow management, they can end up back in trouble. That's one conclusion of some research recently completed by REL, a consulting firm focused on working capital management. REL examined the ins and outs of the cash flow of the 1,000 largest public companies in the U.S. The researchers found that working capital performance, as measured by days of working capital (DWC), improved by about five percent between the second and third quarters of 2009, to 31.7 days. While a move in the right direction, the number remains worse than it was in 2007 and 2008, when it dipped below 30 days.

March 12, 2010, "Good to the Last Drop"

Despite the overall lack of top-line growth during the economic downturn, many companies have stayed afloat by downsizing staff and eking out supply-chain efficiencies. In the face of continuing unemployment and the attendant lag in consumer demand, however, how long can companies maintain respectable margins merely by growing leaner?

Maybe longer than you might think. Opportunities still abound for doing more with less, according to a new study of the 1,000 largest U.S. companies (in terms of sales) by REL, a division of The Hackett Group. Indeed, the study concludes that those companies could wring a total of as much as $709 billion in excess cash flow from their supply chains by adjusting their inventory levels, getting their customers to pay their bills on time, and managing their accounts payable carefully, according to research on working capital for the third quarter of 2009.

February 4, 2010
REL Research Alert: Many Companies Fail to Build a "Cash Culture"

The global financial crisis has made cash a major priority for most companies. But according to a new study from REL, a division of The Hackett Group, Inc. (NASDAQ: HCKT), many still fail to take the key steps required to build a corporate culture that successfully focuses on cash.

February 2, 2010
Big Fat Finance Blog, "Putting the Focus on Cash"

So cash is king, once again. Not that it ever was dethroned; it's just that, for a while, it shared its perch with other corporate goals, like growth. Not anymore. Credit is tight and sales are down, so companies have to wring all they can from the funds they have on hand. This prompts the question, Just how do you do that? A recent report by REL/Hackett Group, "Cash Culture Study," offers some strategies that companies can use to foster a "cash culture."

January 23, 2010
CFOZone, "Crisis has companies focused on cash"

Companies are managing their cash more effectively than they were before the onset of the financial crisis, a survey released on Wednesday suggests. The survey of 53 companies with an average of $24 billion in revenue found that 94 percent consider cash flow optimization to be important or very important. REL's research details the key steps companies can take to build a cash culture, and how prevalent they are in companies today.

REL in the Press – 2009

November 23, 2009
Handelsblatt (DACH), "Supply Shortages Threaten to Empty Warehouses"

Coverage, in German, of REL's DACH region working capital analysis. Infineon executives are also quoted, and working capital performance by about a dozen DACH companies, including Volkswagon, Man, Beiersdorf, BASF, and Alcon, is highlighted.

August 31, 2009
Wall Street Journal, "Big Firms Are Quick to Collect, Slow to Pay,"

Large corporations are tightening the screws on their smaller counterparts as the credit crunch intensifies companies' efforts to hold on to their cash. In an example of corporate Darwinism at work, the recent round of quarterly earnings results showed companies with annual revenue of more than $5 billion sped up their collection of cash from customers while slowing their own payments to suppliers.

Firms with less than $500 million in annual sales, on the other hand, generally took longer to collect cash and paid their bills faster than in the same period a year ago, according to an analysis conducted for The Wall Street Journal by REL, the working-capital division of global strategic advisory firm The Hackett Group.

July 14, 2009
Handelsblatt (DACH), "Too chubby,"

This leading daily news outlet generated coverage, in German, of REL's 2009 European Working Capital research, focusing on the performance of German companies.

July 14, 2009
Associated Press (DACH), "German groups wait longer and longer for their money"

This article, in German, focuses on REL's working capital research.

July 7, 2009
Reuters, "Poor cash forecasting could mean more bankruptcies,"

The brutal recession has made it increasingly difficult for corporate executives to forecast cash flow, a problem that could contribute to a surge in bankruptcies in the face of weak credit markets. About 80 percent of the 1,000 largest global companies are unable to forecast cash flow over the next quarter within a 5 percent range of their actual performance, according to a study by The Hackett Group Inc and it's REL Working Capital unit.

June 1, 2009
CFO, "Cleaner (Balance) Sheets: The 2009 Working Capital Scorecard,"

Plato called necessity the mother of invention. It may also be the mother of collection. Squeezed by a slowing economy and nearly frozen credit markets, U.S. companies showed themselves surprisingly adept last year at freeing cash from the one remaining source at hand: their balance sheets. Ramping upcollect ion efforts and paring down inventories, the 1,000 largest companies slashed days working capital (DWC) in 2008 by 6.4% - the best improvement on that front in at least five years, reports consulting firm REL, the Hackett Group division that compiled this 12th annual edition of the CFO/REL Working Capital Scorecard. The result: a total of $62.7 billion liberated from working capital.

May 28, 2009
Reuters, "U.S. companies taking longer to collect bills: data,"

As the U.S. recession deepened late last year, it took 9 percent longer for businesses to collect money they were owed as customers held onto their cash, according to new research from REL, the working capital division of The Hackett Group. That presented corporate Am erica with a conundrum: Each company's desire to protect its own balance sheet by holding out on paying bills caused ripples of pain through the economy as other companies made the same decision. The 1,000 largest U.S. companies took an average of 39.7 days to collect on sales in the fourth quarter, up from 36.4 days a year earlier, according to the REL data.

April 1, 2009
CFO, "A Current Dilemma,"

Few metrics signal looming danger more sharply than a declining current ratio, yet many industries began the year with current assets outpacing current liabilities by a narrow margin. Seven sectors saw current ratios stumble in 2008, according to REL Consultancy, which compiled the data. Worst hit were independent power producers and energy traders, which suffered a notable 36 percent decline in their aggregate current ratio, to 1.4.

February 19, 2009, "Tight Credit Markets? It's Time to Liberate YourCash,"

Working capital optimization has always been the least expensive and most readily available form of cash. With tightening credit markets the option of liberating cash from a company's operational processes has moved to the forefront. Inventory optimization presents the second-largest opportunity among the working capital components after trade receivables and ahead of trade payables.This analyst insight from Henri van der Eerden offers REL's guidance on how companies can benefit from optimising inventory performance.

REL in the Press – 2008

December 8, 2008
CFO Europe, "Cashing In"

This article spotlights findings from the new REL/CFO Europe Cash Masters scorecard, which shows a clear opportunity for European companies to improve their bottom line through an increased focus on improving cash conversion efficiency (CCE) - the amount of cash flow that companies derive from operations as a percentage of sales.

December 1, 2008
CFO, "Tight Makes Right: Companies still have plenty of opportunity to squeeze more cash out of operations,"

Regal Beloit Corp. CFO David Barta has taken approximately 30 days out of his company's cash cycle over the past four years. But he and the rest of the leadership team at the $1.8 billion maker of motion-control products want more. "Our commitment to the board this year is to take another 3 days out of the cycle," Barta says. "That is not a huge stretch, but it is something for which my feet are held to the fire."

November 6, 2008
Dow Jones Newswire, "IN THE MONEY: Minimize Layoffs By Creating A Cash Mine: Study,"

The average global corporation is sitting on enough cash to buffer half the impact of a yearlong recession, if management could only figure out a way to get their hands on it That's the conclusion of a study released this week by strategic consultants at the Hackett Group.

Signs abound that this recession could be severe. Motorola Inc; . (MOT) recently announced it was laying off 3,000; Goldman Sachs Group Inc.(GS); 3,260; Xerox Corp. (XRX); 3,000; and Chrysler LLC; 5,000. By contrast Hackett estimates the 1,000 global companies in its study could minimize job cuts and s ave $3.2 billion, or nearly 13% of annual revenue, if companies were more strategic.

November 1, 2008
CFO Asia, "Finding Your Strong Suit,"

The latest Cash Masters Survey from CFO Asia and REL offers hints on how to prepare for a slowing economy. As Warren Buffett likes to say, you don't know who's been swimming naked until the tide goes out. Although this latest CFO Asia/REL Consulting Cash Masters Survey covers 2007, a happier time for the APAC 850 (the 850 largest Asia Pacific companies in terms of sales), it may offer a few hints about how to get your business suit ready for what promises to be one of the corporate world's highest, driest periods in decades.

September 1, 2008
CFO, "No Time to Lose: The 2008 Working Capital Survey,"

Beware your survival instincts: they may dampen corporate performance more than you might expect. With a recession looming or quite possibly upon us, it can be tempting to ease up on receivables and retain inventory in order to placate cash-strapped customers. But those seemingly small sacrifices actually impose a steep cost, diverting precious cash to working capital. CFOs who want to bolster the case for strict working-capital policies may find plenty of support in the 11th annual CFO/REL Working Capital Scorecard.

September 1, 2008
CFO Asia, "Buddy, Can you Spare a Trillion?"

Asia's top 850 companies failed to make full use of US $833 billion in working capital because of inefficient cash flow practices. Last year, CFO Asia's 2007 Working Capital Survey estimated that the region's 725 biggest companies, excluding automakers, had US $535 billion in working capital unnecessarily tied up in receivables, payables, and inventories in 2006. It's the same story in this year's survey, which covered 850 of the Asia-Pacific region's top enterprises. According to REL, the U.S. consultancy that conducts the study, US $833 billion in total working capital was not put to productive use in 2007.

August 31, 2008
Associated Press, "Checks in the Mail,"

It's taking more time for companies to collect on their sales, longer than any time since the 2001 recession. Cash Flow consultant REL, (a division of The Hackett Group) and CFO Magazine found it took the country's 1,000 largest publicly traded businesses, excluding automakers, an average of 41 days for them to collect their money from customers in 2007. That's a 3.4 percent jump from 2006.

August 27, 2008
Reuters, "Corporate America taking longer to collect: study,"

Corporate America is having the hardest time getting its customers to pay their bills since the last U.S. recession in 2001, according to a study released on Wednesday. The 1,000 largest U.S. public companies in 2007 took 41 days on average to collect payments from their customers, up from 39.7 days a year earlier and 39.2 days in 2001, the study by consultancy REL and CFO Magazine found.

August 27, 2008
Financial Times, "Crunch brings working capital into sharp focus,"

U.K. companies are now doing a worse job at managing working capital performance, as they also see their ratio of free cash flow to sales falling sharply, according to research by REL, a division of The Hackett Group.

July 22, 2008
California Executive, "How to Handle Delinquent Accounts Before Calling Collections,"

This article on how companies can reduce late payments in the current cash-strapped economy, includes insights from REL Global Practice Leader Hye Yu.

July 8, 2008
CFO Europe, "Dash for Cash"

With credit at a premium, freeing up funds from working capital gains a new urgency. This cover story features findings from the 2008 REL/CFO Europe TWC Research. It also profiles two companies that have made dramatic improvements in TWC - German commercial vehicle group MAN and Italian white goods manufacturer CFO.

July 8, 2008
CFO Europe, "Working Capital Scorecard 2008"

Companies have improved working capital management, but not by much. This article provides detailed results from the 2008 REL/CFO Europe TWC Research, and links to the complete survey results, which provide detailed metrics for the 1000 largest public companies in Europe.

May 1, 2008
CFO, "Let the Games Continue,"

Last year, when we first took a look at the corporate propensity to prop up fourth-quarter results at the potential expense of the following quarter's performance (see "Fourth and Goal," November 2007), recession loomed on the horizon. Today everyone from Warren Buffett to a bevy of economists to, in fact, CFOs say that the recession isn't just looming, it's here - and it's not leaving anytime soon.

Media Relations

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Summit TV (SA), Business Q&A

Summit TV (SA), "Business Q&A,"

REL director for South Africa Jonas Schoefer unpacks details on how the working capital performance improved slightly for 160 of the largest South African public companies in the REL analysis, in an interview with South African Business and Financial Journalist Candy Guvi.