finding cash velocity in accounts receivable

Challenge:  How can a national transportation and logistics company find hidden cash flow in the way it manages financial transactions?     

Methodology:

• Aveus performed a proprietary diagnostic of accounts receivable transactions flowing through one of the firm's largest divisions.  In addition to covering the performance chain from creation of the invoice to cash on hand, Aveus looked more broadly to include the chain from completion of the service to creation of the invoice.
• Using findings from the diagnostic, Aveus mapped, measured and then error proofed a new transaction performance chain.
• Through decision-making and application sessions, Aveus led the executive team to define a roadmap for performance sustainability that will be used across divisions.
  

Benefits Realized:

• For the first division impacted by this work, cash equaling 14 days of sales outstanding (DSO) was freed with no disruption of customer needs.
• Implementation across divisions is improving cash flow predictability through standardization.
• Impact at the corporate level will be millions of dollars, leveraging existing capital and increasing cash velocity through the business.