Cash flow delivered
Our clients span across multiple industries, sectors and geographies. In the past ten years alone, REL has implemented more than $25 billion in working capital improvements for our clients. For example:
Prominent retailer reduces inventory by $100 million
A $2.7 billion clothing retailer with high sales and store growth wanted to establish clear visibility and control across the supply chain. REL developed planning methodologies, strategies and tools to provide the client with the visibility required to ensure optimum inventory levels. To evaluate supplier performance, the REL team established a vendor scorecard, capacity dashboard and sourcing metrics to provide performance metrics to review the vendor, make buying decisions and to support growth objectives. Key supply chain personnel undertook training, ensuring consistency and developing key skills. Within 6-12 months of the project roll out, the projected inventory reduction is between $100 million-$122 million.
Major automobile manufacturer improves cash flow by more than $830 million
A major US automobile manufacturer was facing a decline in global sales and increasing commodity prices, while aware of their need to support new research and engineering development. Working capital was not considered during the negotiation process of supplier contracts, causing a significant spike in payables, due to the majority of spend taking place on one day per month. In addition, there was very little cooperation between departments in terms of understanding the impact of individual department actions.
REL segmented the spend targeting over $45 billion annually to move to new terms. A phased implementation program was set up to allow appropriate communication with suppliers, internal communication and system considerations. The system was programmed to allow for additional date recognition to prevent early payments and policies were revised for all new contracts to reflect the new payment terms. Four months into the project, there was a cash flow improvement of over $830 million and is expected to continue. In addition there has been an increase of over $1 billion in the client's debt capacity.
Contact us today for a complimentary cash flow assessment and take the first step toward releasing more cash from your operations.
