What happens if your biggest supplier changes your credit terms or if two of your mid-sized customers struggle to pay their bills? Cash management ensures that companies are shored up against their position and against problems in the supply chain. Balance sheet liquidity is now a priority with cash now on top of the CFO’s agenda. Companies need to be able to clearly demonstrate that they are in full control over their cash position.

Capgemini has a strong track record of working with clients to improve their working capital performance and provide both immediate remedies and solutions that give security in the long term.

We can help you assess where your organisation is in terms of its abilty to manage cashflow.

This section includes:

• Benefits of Cash Management
• Capgemini’s approach
• Capgemini capability
• Success stories

Benefits of Cash Management

A better understanding of the key influencers on your liquidity.

The ability to demonstrate long term stability to both internal and external stakeholders.

Embedding free cash flow as the key business measure at all levels of the organisation.

Capgemini Approach

Capgemini’s approach to cash management results in:

A rigorous assessment of the health and potential vulnerabilities of your cash position and processes, based on leading practice in your industry.

A set of improvement recommendations to follow with the plans to implement.

A Capgemini team who will work with clients to implement the plan coaching their staff, and training them in the new ways of working that secure the cash position without damaging business relationships.

Capgemini’s Capabilities

Risk Assessment. We review recent historic and planned future cash flow, using statistical risk analysis to benchmark your business against lead indicators as a means of identifying gaps and areas for improvement.

Cash flow modelling. Our Operation Research capability and tools allow us to extract and rapidly analyse a large amount of transactional information and perform ‘What-if?’ scenario modelling. How would a shortening of payment terms from your largest supplier impact your future cash position? How many smaller customers need to renege on their credit terms before it significantly impacts your cash flow?

Building capability in the work force. We work directly with our client staff to help embed our tools and techniques in the organisation. We see knowledge transfer and accompanying behavioural change as a fundamental outcome of a successful engagement so that improvements stick.

Transaction process enhancement. We can bring our knowledge of best practice processes for accounts payable, accounts receivable, and inventory management to provide better control and allowing staff to focus on cash optimisation initiatives e.g. best use of supplier prompt payment discounts.

Debtor Management. We segement the debtor ledger and defining with you the most effective, targeted processes for each tier of debtor; reactive or pro-active collection; in-house vs outsource; process driven or relationship driven.

We can help you assess where your organisation is in terms of its ability to manage cashflow.

Success Story

Glasgow’s Council Tax Collection

A joint Capgemini Consulting / Glasgow City Council team combined Council expertise in Council Tax and Council Tax benefits legislation and administration with Capgemini’s knowledge of financial process modelling change management and stakeholder communications to devise new financial control mechanisms, develop customer segmentation, and introduce improved administrative procedures. As a result of the work the Council is planning an annual 2% increase in its council tax collection rates from 2008, which is an efficiency saving in administration of just over £200,000 per annum.

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