Financial Optimization

COST OPTIMIZATION

Companies exploring ways to improve their financials often target operating cost performance. We'll work with you to understand and optimize your cost structure, so you can drive sustainable top- and bottom-line growth.

Our services include:

• Expense Management – Identify opportunities to leverage your company’s (or portfolio) spend with 3rd parties through item standardization and supplier rationalization. Deploy spending controls to ensure expenditures are required and not prematurely executed.
• Asset Utilization – Identify opportunities to better utilize investment in resources (facilities, equipment, and labor) by assisting in the deployment of capacity analyses to determine opportunities to improve output. As part of this analysis we will help you understand where resources are capacity-constrained or underutilized. We will help develop strategies for more effective asset utilizations including: investment prioritization, opportunities to deploy underutilized resources, or raising funds through disposal.
• Demand Management – Deployment of a Sales and Operating Process (SOP) that links your manufacturing and material ordering processes with customer demand expectations, improving your responsiveness to customers through reduced order to delivery cycle times, and improving costs by substantially reducing expedite and inventory costs due to a mismatch of inventory and customer demand.
• Shared Services, Offshoring, Nearshoring, Outsourcing – We standardize processes to improve service delivery, remove duplication, create centers of excellence, and select the right resource strategy that fits your needs.
• Lean Enterprise – Identify process improvements using lean concepts that improve cycle times, eliminate waste from unnecessary and overly complex processes or activities, and increase throughput per resource deployed.
• Product Profitability and SKU Rationalization – We delineate costs by type and activity, assigning it to the output of those activities, and develop a clear understanding of profitability by product and SKU (Stock Keeping Unit) to identify under performing SKUs and strategies that will reduce product cost. We utilize this information to establish baseline profitability by part number based on cost drivers rather than traditional accounting cost.

CASHFLOW AND WORKING CAPITAL OPTIMIZATION

A key metric of success for most companies is demonstrating the ability to grow revenue and profitability enhancing value for investors. To achieve this goal, companies must continuously invest in product development, marketing, technology, equipment, and inventory (to name a few) to ensure they establish and maintain a sustainable competitive advantage. However, companies are often constrained in the investments by cash generated through operations.

While this constraint may be addressed through third party funding it comes at a cost in the form of interest, restrictive covenants, higher business risk in economic downturns, and investor value dilution. Often overlooked is a funding source that is free: cash tied up in working capital. WP Advisory can help unlock this unproductive cash for investment.

Working capital improvements are made by streamlining complex operational processes across the organization. By focusing on operational processes to drive sustainable change, working capital initiatives also impact revenue, cost, and service. Specific areas where we can help include:

Throughput Efficiency

• Increasing output per resource deployed
• Improving cycle time to reduce the amount of material, labor, and expenses tied up in inventory
• Disciplined demand management to minimize the accumulation of unnecessary inventory
• Shortening the order to cash cycle
• Improving capacity utilization

Data Analysis

• Analysis of receivables and payables
• Identifying cash improvement opportunities
• Initiating expense management to eliminate unnecessary expenditures or delay timing of expenditures
• Leveraging spending to secure more favorable payment terms

Benchmarking

• Analysis of and benchmarking to industry best practices