20m € working capital improvement through standardisation
- Our customer strategy reiterated the need for cash, standard core processes and also the need for CI.
- Procurement leadership team decided that payment terms were a high priority.
- Fragmented processes.
- Lack of credibility among suppliers.
- Define and build a performing procurement process that contributes cash by the end of 2014 through payment term standardisation and extension, whilst improving on-time payment behaviour to meet supplier commitments.
- 20m € cash benefit.
- A repeatable model of how to standardise and extend payment terms, improving contract compliance.
- OTP KPI’s designed to drive further improvement.
- Standardised and extended payment terms.
- Measuring standardisation, compliance and OTP.
- Improved payment term change implementation.
- Standardised process to set PT’s and drive compliance.
- X-BU and X-Region program, working with international people.
- Measure procurement performance.
- Standardise process of setting payment terms.
- Eliminate non-compliance.
- Optimise on-time payment.