industry
Retail & Consumer Products

Hardgoods and apparel co. needs tailored working capital optimization program

Key metrics:
  • Released $6M of cash tied up in working capital over a 3-month period ​​
Value levers pulled:
  • Working capital optimization
  • Value assessment and root cause diagnostic
  • Program management
  • Benefit tracking

Picture this...

You’re a PE-backed, $1B value-added distributor of personalized hardgoods and apparel. You’re looking to improve your cash flow, but you need support to reevaluate your working capital strategy.

You turn to Accordion.

We partner with your team to conduct a working capital diagnostic (focused on accounts receivable and accounts payable). To do this, we:

  • Conduct a value assessment and root cause diagnostic:
    • Identifying $5-$9M in working capital enhancements for receivables/payables.
    • Conducting process reviews, data analytics, root cause analyses, and more to evaluate operational and strategic levers driving working capital performance.
    • Formulating and securing approval for a strategic plan with 10+ initiatives to improve working capital and customer/supplier value.
  • Manage and track the working capital project:
    • Setting up governance and creating Initiative Charters and workshops for program alignment and accountability.
    • Managing project plans via Smartsheet, conducting weekly reviews, and tracking KPIs to gauge target achievement.

Your value is enhanced.

You unlock $6M of working capital over a 3-month period, with a clear path to achieving $3M more over the next 6 months (which falls on the high end of opportunity range). You also now have the program support needed to implement further cash flow increase initiatives.

Enhanced value:

You reap multiple benefits, including:

  • Released $6M of cash tied up in working capital over a 3-month period ​​​