Working Capital Management
Whether you are growing by leaps and bounds or going through a rough patch, cash flow is the lifeblood of your organization.
Sutker Moran can elevate your working capital management capabilities by getting the facts and implementing proven strategies through:
- Developing detailed weekly cash projections
- Monitoring your Days Sales Outstanding for Cash Collections/Accounts Receivable
- Tracking Inventory Turnover for inventory management
- Scrutinizing Days Payable Outstanding for Vendor Management/Accounts Payable
Case Study: Stepping in to Ensure a Successful Transition
$40 million Plastic fabrication company
The Chief Financial Officer of a $40 million Plastic Fabrication Company resigned in the midst of its sale to a strategic buyer. The accounting staff and the president had limited knowledge of the inner workings of the financial department.
Sutker Moran was hired and immediately took over the position. Sutker instantly plugged itself into the Company’s cash situation to ensure vendors were being paid timely, especially critical given the impending ownership change. Simultaneously, Sutker began to finalize year-end financials which included developing a monthly close process for the accounting team. Sutker took the lead in navigating the due diligence period with the prospective buyer. Finally, Sutker seamlessly transitioned its responsibilities to the CFO of the buyer.
Case Study: Too Many Products Cause Sizeable Loss
$12 million framed picture manufacturer
A third-generation, family-owned $12 million framed picture manufacturer was losing money. For many years, these losses were buried within the overvaluation of obsolete inventory. Burdened with a large overhead structure, the company sold “all things to all people.” The excessive product lines and sizeable customer base created inefficiencies within the plant and confusion within the marketplace.
We analyzed each category within each product line, and each product within each category, and recommended a 40% reduction in SKUs. Selective price increases were implemented for the remaining products. In addition, we scrutinized each non-direct labor position, resulting in over $400,000 of savings from job eliminations. Finally, by narrowing the product base and instituting an inventory reduction program, the space required to support the operations was reduced, allowing for one of the three operating facilities to be sold.