Working Capital Chemical Industry

working capital chemical industry

We’ve worked on a number of Working Capital Improvement and Management Projects over the last 15 years – one working capital chemical industry project that we were involved in focused on 3rd Party Accounts Receivable for a Global Food Quality Chemical Manufacturer.

Global AR Reduction

Company – Global Food Quality Chemical Manufacturer

Project Description – Working Capital Project with a focus on 3rd Party Accounts Receivable

Location – Global

Working Capital Issues

  • High AR in most countries
  • Overdues high in most countries
  • Long Payment terms in most countries
  • A wide spread belief that reducing terms with existing customers will lead to a loss in sales (metal model)
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JustOne Actions Undertaken

  • Visited Holland, Brazil and USA and produced reports and targets for each
  • Trained 7 Internal Consultants (ICs)
  • Led a pilot facilitation in Chicago with all ICs in attendance
  • Supported the ICs who implementation the project during 2007 and 2008
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Benefits

  • The ICs facilitated the change in all parts of the world
  • Common processes and procedures in place
  • Common leading practice methodologies adopted
  • Mental models regarding terms reduction changed
  • Accounts receivables were reduced by 28%
  • Reductions in Overdues and significant reduction in payment terms in some countries
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Client Testimonial

Comment from the FD of the company: “Even in the current challenging economic climate we have maintained the gained improvement from the project” – CFO and Sponsor