Working Capital Self Review – Niall Cooter Advisory

How do your Working Capital approaches measure up?

Review the key drivers of performance below and consider how well these are addressed within your organisation.

Customer onboarding

Know your customer
Credit risk assessment
Credit limits
Payment terms
Payment methods
Ts&Cs acceptance

Order processing & fulfilment

Order confirmations issued
Credit limit & status check
Incoterms
Order hold process
Prompt billing
Management of un-billed revenue

Collections

Tailored collection strategies
Proactive collections management
Use of AI & automation in collections
Early identification of invoice disputes
Prompt resolution of disputes
Effective debt escalation protocols
Application of late payment legislation

Payment receipt processing

Receipt of remittance advice
Speed and accuracy of cash posting & allocation
Use of automation
Ledger hygiene/low UA cash
Collaboration between Collections and Cash Allocation teams

Order To Cash behaviours & culture

Team communication rhythm
Meaningful cash targets
Hunger for results
Incentives
Engagement with Sale & Operations
Quality data insights
Performance monitoring and tracking

Vendor onboarding

Know your vendor
Vendor resilience assessment
Procurement management
Payment terms
Payment methods
Ts&Cs acceptance

Purchase ordering

PO policy
PO compliance
Requisitioning & order controls

Invoice processing

Electronic invoice processing
Automated 3-way match
No PO no pay
Goods receipting
Approval workflows for exceptions and 2-way matches
Rejection logging
Management of GRNI

Supplier payment processing

Frequency of payments
Pay through date
Emergency payments
Control over early payments
Duplicate payment controls
Payment methods
Payment clock
Terms compliance/on-time payments

Procure to Pay behaviours & culture

Team communication rhythm
Engagement with Procurement & Operations
Quality data insights
Performance monitoring and tracking

Demand forecasting & planning

Collaboration between Sales, Procurement and Ops
Sales and Operations Planning (S&OP) process
Seasonality
Promotions
Predictability of demand
Production scheduling

Inventory management

Make or Buy
Inventory strategy (MTO or MTS)
Inventory categories (e.g.Safety Stock, Cycle Stock etc)
Goods In performance
Supplier performance
MOQs and EOQs
Lead times (manufacturing and replenish etc)
Goods in transit
Vendor Managed Inventory
Returns processing

Fulfilment

Incoterms
Delivery lead times
Quality control
Packaging & freight

Forecast to Fulfil behaviours & culture

Team communication rhythm
Collaboration between Production and Supply Chain Management
Collaboration with Sales & Procurement
Quality data insights
Performance monitoring and tracking

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Location

London, United Kingdom

The information contained in this website is for general information purposes only
and should not be used as a substitute for consultation and professional advisors