A large, New York Stock Exchange-listed leader in US environmental services, offering a wide range of solutions for consumers as well as businesses and municipalities.
Our client’s DSO exceeded 110 days and was expanding monthly, so they needed to quickly assess their Order-to-Cash process and boost receivables collections. Maximizing cash flow by reducing DSO and documenting the upgraded Order-to-Cash process was an integral part of their plans to grow through acquisitions with a scalable Order-to-Cash process.
In the first ninety days following the completion of the project, our client improved process efficiency and experienced a decline in DSO from 110 to 85 days. This performance enhancement initiative lasted only twelve weeks and resulted in decreased expenses and higher cash flow.
Read on for more information on how we successfully delivered a positive outcome for our client.
Our client’s Days Sales Outstanding (DSO) exceeded 110 days, and this number was growing month by month. Our unique expertise was required to analyze their Order-to-Cash process and offer full support with changes and improvements to their receivables collection.
Our client’s CFO had a key goal of maximizing cash flow by minimizing DSO and documenting the enhanced Order-to-Cash process for all locations. Our client intended to expand through acquisitions and required a scalable Order-to-Cash process to successfully accommodate the anticipated expansion.
Sirius Solutions assembled a multi-disciplined team comprised of professionals with expertise in project management, internal controls, process optimization, and management reporting.
The fundamental reasons for the excessive DSO were determined by analyzing the existing procedures. Our client was then given recommendations to standardize and optimize their processes, and our Sirius Solutions team of experts executed those with the most impact in the shortest amount of time.
Additionally, management reports were developed to provide our client’s Sales and Accounting departments with a deeper understanding of DSO and the tools necessary to manage an enhanced process.
And finally, our Sirius Solutions team documented procedures and taught our client’s workforce the new processes, providing our client with recommendations for future process improvement.
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