09 Feb Reducing Working Capital Needs
A large, capital intensive business was struggling with cash flow and debt servicing. The company needed to free up working capital to be able to service its debt in an environment of rapidly declining revenue.
Use Lean Six Sigma projects to free up working capital.
eMRI worked with leadership to identify potential opportunities, then key people were trained and teams assembled. Supported by eMRI, six teams focused improvements in the areas of accounts receivable and collections. A combination of improvements focused on reducing non-value-added time and activity, technology enhancement and payment methods among other things was able to free up $23 million in working capital.
$23 million in working capital.