Enhancing Cash Flow and Liquidity Power
Accordion helps clients achieve sustainable increases in cash flow that can then be used to fund true value creation programs that generate enhanced shareholder returns.
With extensive experience delivering liquidity improvement for private equity-backed companies, our experts improve cash flow management by identifying the root causes of liquidity issues. We then design and execute solutions to address these issues and improve liquidity. Here’s how:
Knowing Where to Look:
We address cash flow management concerns by analyzing vendor contracts to optimize payment terms, scrutinizing accounts receivable balances to reduce past due aged customer receivables, assessing cash tied in inventory levels, and setting right inventory levels to deliver target customer service.
Leveraging Proven Levers and Lean Six Sigma Methodologies:
Our Lean Six Sigma trained experts utilize a disciplined, analytics-driven approach to validate root causes for liquidity issues and design sustainable solutions to address them.
Elevating Accounts Payable Processes:
We negotiate optimal payment terms with vendors, standardize internal processes to maximize liquidity within existing vendor terms, utilize technology to automate 3-way matching processes, reconfigure existing P2P automation solutions and/or assist in the selection and implementation of new automation tools.
Enhancing Accounts Receivable Processes:
We tailor collection management strategies specific to customer segments, automate workflows to resolve collection disputes, incentivize sales teams around AR performance (requiring a balance between payment terms and revenues), implement RPA to automate cash application process, deploy collection dunning automation tools, and optimize collection modules in existing ERP systems.
Improving Inventory Management:
We use statistical formulas to set target inventory levels by location/SKU, prioritize the continuous improvement of demand forecast planning by setting up processes to measure forecast errors/bias, standardize purchase order control processes, sell or repurpose slow-moving, obsolete inventory, establish best practice S&OP process to balance supply-demand in accordance with business priorities, and reconfigure/implement demand and supply planning tools, S&OP tools, VMI tools, and integrated business planning tools.
Developing Holistic Sustainable Solutions:
Our multi-functional experts draw from deep expertise in utilizing current and emerging technologies, sales and operations planning processes, supply chain, and balance sheet management best practices. This enables us to develop programs that drive productive behavior and ways of working to manage change – ultimately leading to sustainable liquidity enhancement.