Working Capital Management

Release cash trapped in your business by optimising your working capital. Our working capital management services allow you to increase liquidity, providing mobility and flexibility. Our objectives are clear, we want to help you manage your resources in the most effective and productive way, and help you to achieve sustainable cash flow. Our services will provide you with extra financing capacity from working capital trapped in your operations so you can focus on more strategic tasks:

Inventory Management & Reduction 

Reduction and management of your inventory is crucial to help you release working capital. By optimising the average duration of your inventory turnover, we can improve and more effectively manage the capital investment required.

Accounts Payable & Receivable 

By analysing the status quo of your accounts payable and receivable functions we can provide you with a clear picture of your supplier base, assess your existing credit terms, renegotiate with suppliers, and favourably improve payment terms, giving you greater control over your cash flow. We can identify key areas of improvement for you and help you to take suitable remedial actions accordingly.

Performance Metrics 

Our services utilise a range of performance metrics to assess and improve your working capital management. These include:

  1. Days Sales Outstanding (DSO) – reducing the time your invoices are outstanding and reducing debtor days
  2. Days Payables Outstanding (DPO) – measuring your outstanding payment liabilities
  3. Days Inventory Outstanding (DIO) – reducing the length of time from investment in your inventory through to final sale
  4. Cash Conversion Cycle (CCC) – reducing the time your investments in purchasing, production or manufacturing and selling take to generate customers and cash

Cost recovery  

Through our sister business PCMG, a specialist operating cost consultancy, we are able to offer a range of cost recovery services. PCMG is part of the Ayming group, and has secured more than £301 million of refunds and savings to date and has worked for half of the FTSE 100. Working primarily on a success fee basis, our working capital management team can undertake a number of audits across accounts payable, telecoms and utilities to identify and recover any overpaid costs.

Accounts Payable Audits

Using PCMG’s unique methodology and proprietary software, we can undertake a comprehensive audit covering up to 3 years of your transactions, in order to identify any over-payments and recover these from your suppliers. Our three-step approach is designed to deliver results quickly whilst ensuring a thorough audit is undertaken, covering all potential avenues:

  1. Supplier Balance Reconciliation: A full reconciliation of your supplier accounts to identify aged credit balances.
  2. Payment Review: Identification and recovery of a range of errors that are missed by finance systems, for example transposition errors or incorrect supplier payments.
  3. Contract Compliance Review: A detailed, line-by-line analysis of your invoices and contracts. This ensures you have had benefit of everything you’ve negotiated with suppliers, including unit cost pricings, discounts and rebates.

Specialist Utilities Reviews 

With all PCMG’s Utilities Reviews we will conduct a thorough audit, generally covering the last six years’ charges. Our specialist team will help you to recover any overpayments or inconsistencies identified as a result of their investigations. Each of the following working capital management services is deliberately designed to enhance cash flow and optimise working capital.

Energy & Gas Cost Recovery Service: Billing errors for energy are more prevalent than ever before, with one in three meters being overcharged in the past six years.  We can undertake a comprehensive audit covering up to 6 years of your electricity and gas charges. This audit covers your energy and pass-through, 3rd party charges including available capacityDUoSTNUoS, gas transportation, commodity, distribution & transmission loss factors, balancing charges, meter operator charges, Renewables Obligation, Climate Change Levy and Feed in Tariff charges.  

Water Cost Recovery Service: High water charges are often the result of underlying problems on the supply side – from leakages and inefficient usage to simple billing errors.  Our audit covers up to 6 years of your water, waste water and sewerage charges. We will assess costs such as water tariffs, surface water drainage, sewerage allowances, trade effluent, meter sizing, usage levels and water conservation measures.  

Telecoms Cost Recovery: When it comes to telecoms, it can be difficult to ensure you are getting what you’re paying for; with a complex range of billing structures it can be hard to identify when you’ve been billed incorrectly, whether you’re still being charged for unused devices or lines, or even if you’re being charged the right amounts given the complexity of the pricing and network structure. Our audit covers up to 6 years of your voice, data and mobile charges and covers charges such as PSTN calls and lines, telemarketing calls and plans, private networks (MPLS / Ethernet), leased line services (Megastreams / Kilostreams), equipment maintenance charges and mobile voice and data costs. Going forward, our Telecom Expense Management (TEM) solution will also help you to gain enhanced visibility, management and control over your telecom assets and expenditure on an ongoing basis.