Streamlining Operations for an Industrial Manufacturer
Challenge
A private equity fund acquired a multi-billion dollar industrial manufacturer with a global operational footprint. Following the acquisition, the company’s executive leadership team was tasked with streamlining operations and reducing costs across functions.
The performance improvement efforts resulted in the stabilization of aged accounts receivables with almost a 50% reduction in past due invoices and an annual reduction in labor spend of $1.5M.
How we helped
Riveron was engaged to help execute performance improvement initiatives within the finance organization and realign the existing shared services function to better support the business. We enhanced the accounts receivables process and developed new roles and responsibilities for the accounting teams who supported these functions to help the company improve collections. We also redesigned the month-end close process to be more transparent and timely.
Additionally, our team redesigned the organization and reporting lines, and redistributed key tasks to the highest performing centers to improve operations across the globally dispersed locations. Cross-functional and cross-regional communications were established to ensure timely and consistent information was shared across the business.
Results
In adopting a scalable, globally sustainable operational model, the industrial manufacturing company increased transparency across their organization and visibility to key working drivers, including complex intercompany transactions. Additionally, the performance improvement efforts resulted in the stabilization of aged accounts receivables with almost a 50% reduction in past due invoices and an annual reduction in labor spend of $1.5M.