Task definition
- Resolving the liquidity crisis
Industry / Function / Environment
- Leading manufacturer of machinery and equipment for the production of food and pharmaceuticals
- Commercial Manager / CFO
Situation:
- Liquidity crisis
- Expansion of external financing is not possible
- Considerable capital tied up in warehouses in Germany and abroad
- The age structure of the receivables portfolio – especially from foreign customers – is unsatisfactory
Measures:
- Raise awareness of all teams by educating them about the interrelationships between P&L, balance sheet and cash flow
- Create a central database of all portfolios
- Special premiums for the sale of selected machines and components
- Restrictive change of signature regulations for orders
- Focused processing of receivables by one employee
- Establishment of the cash flow calculation in the quotation preparation and after receipt of order
- Capital release from inventories 700TEUR
- Capital release from reduction of old receivables 300 TEUR
- Establishment of the cash-first concept in internal processes
- Significant contribution to solving the liquidity crisis and to avoiding future liquidity crises
- Customer portfolio: manufacturing industry and trade for food, convenience food, pharmaceuticals
- Product portfolio: Machines and systems for batch and continuous production, fine comminution, emulsification, mixing, cooking