An introductory presentation on N&G and how we optimise working capital and supply chain management.

1. Working Capital Optimisation
Specialists in
Working Capital &
Supply Chain Optimisation
© N&G 2010 - all rights reserved
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2. 1. Introduction Working Capital Optimisation
About N&G
 Focused on Working Capital and Supply Chain
Optimisation since 2001
 9 senior professionals with specialist expertise Gothenburg
and strong international industry backgrounds London
 Over 75 years combined experience in enhancing Paris
supply chain performance and working capital
management Madrid
Parma
Athens
 English, French, German, Greek, Italian,
Spanish and Scandinavian language capabilities
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3. 1. Introduction Working Capital Optimisation
Some N&G Clients
 Manufacturing and service businesses with national and international operations, incl:
ALcontrol Laboratory testing services (NL, Eng)
Compal Fruit drinks (Port)
DocMorris Online pharmaceutical retailer (Ger, NL)
Drie Mollen Coffee manufacturing and services (Sp, Fr, NL)
Endeka Ceramics Ceramic ingredient manufacturing (Sp, It, global)
Findus Food manufacturing (Swe, Fr, Nor)
Gate Gourmet Airline catering (Switz, global)
Harvey Nash Harvey Nash Human resource services (UK, Ger)
Heiploeg European shrimp processing (NL, Belg, Ger)
Hyva Transportation hydraulics (NL, Ger)
Jofel Hygiene and paper products (Sp)
Lewis Live Conference staging services (Eng)
LINPAC Packaging, racking & storage solutions (Sp, Eng)
Macrae Seafood Fish products (Scot)
Mater Healthcare Private hospital (Ire)
OyezStraker Office Supplies (Eng)
Swissport Airline ground services (Switz, global)
Young’s Bluecrest Seafood products (Eng, Scot)
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4. 1. Introduction Working Capital Optimisation
Our Experience
Our experts gained their specialist skills with N&G, other world-class
consultancies*, and in:
 major multinational manufacturers…
including Akzo Nobel, Alpha Laval, AstraZeneca, BASF, BMW, BOC, BP, EdF, Enichem, Ericsson, Ford, Hexion
Specialty Chemicals, IBM, Kimberly Clark, Laporte, Linpac, Massey Ferguson, Motorola, Perkins Diesel, Petrofina,
Phillips Petroleum, Procter & Gamble, Rhodia, Rolls Royce, Saint Gobain, Siemens, Thorn, Total, and Unilever;
 across a wide range of industries…
including agricultural machinery, automotives, cables, chemicals, ceramics, construction materials, FMCG, drinks
manufacturing, electronics, engines, food processing, glassware, health & hygiene, household and industrial
appliances, hydraulics, packaging, paints, petroleum, pharmaceuticals, plastics, power generation, retail, toxic
waste disposal and transportation, utilities and many other business sectors;
 in a global environment…
including in Algeria, Australia, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece,
Hong Kong, Hungary, Iceland, Ireland, Italy, Japan, Korea, Libya, Morocco, Netherlands, New Zealand, Norway,
Oman, Poland, Portugal, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tunisia, Turkey, UAE, UK and USA.
*including Deloitte, Ernst & Young, KPMG, McKinsey, PwC, Coopers & Lybrand, REL and Stanford
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5. 1. Introduction Working Capital Optimisation
Our Philosophy as Consultants
Tell people what to change…
 … and they’ll explain why it’s a bad idea
 … so nothing changes.
Give people the right information…
… so they decide the right changes
… then they want to make change happen.
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6. 1. Introduction Working Capital Optimisation
Key N&G Strengths -
our People and our Methodology
 Senior professionals undertake the work…
 experience
 speed
 quality
 who you see is who you get
 applying specialised N&G methodologies…
 key analyses illustrate the problems and processes
 reveals the opportunities
 develops practical tailored solutions
 motivates personnel for change
 embeds lasting improvements
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7. 2. WCOTM Working Capital Optimisation
2. Working Capital Optimisation
WCO
TM
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8. 2. WCOTM Working Capital Optimisation
Why Optimise
Working Capital?
 Substantial capital is released by Optimisation of inventories, receivables
and payables while protecting/enhancing EBITDA
 Released capital can be re-invested to drive additional profits, used for
permanent debt repayment, or returned to shareholders
 Released capital = 100% added shareholder value
 NB. Released funds have the value of equity, not debt!*
 Operational efficiency improvements help profitability too
*Want to understand more? Contact us.
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9. 2. WCOTM Working Capital Optimisation
Why Is Optimising Working Capital
such a Challenge?
• Working capital levels are invariably driven by embedded
procedures that cross departmental boundaries
• The driving processes are often obscure and complex
• No one person (below CEO) is responsible for all the drivers,
and no-one understands the potential impacts on operations
and profitability of implementing changes
• Management training, responsibilities and support systems
often focus well on sales, costs and margins, but not well on
the capital employed to generate the profits
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10. 2. WCOTM Working Capital Optimisation
Are the Drivers of Working Capital so Complex?
• Our experience has shown that even Receivables Days Outstanding
can be influenced by people, practices and decisions in any of these
functions:
 Sales  Legal (contractual)
 Customer Services  Board (strategic/cultural)
 Finance  Operations/manufacturing
 Logistics  Buying
 IT  Quality Control
 Marketing  Planning
• The drivers of Inventory Days are even more complex*
*Want more detail? Our contact info is on the last slide.
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11. 2. WCOTM Working Capital Optimisation
N&G’s methodology combines:
• Analysis:
 specialised data analyses and timeline measurement
 end-to-end processes identification and mapping
 identification of existing and missing time drivers
 identification of substantial viable improvements
 provides information to drive understanding and change
and:
• Change Management techniques to overcome natural
resistance to change:
 presentation of information leading to better decisions
 sharing of experience and best practice
 Workshop environments generating understanding and enthusiasm
 enable senior management in strategic decisions
 enable level 2 and 3 personnel in process change decisions
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12. 2. WCOTM Working Capital Optimisation
Working Capital Optimisation:
Our Performance
The capital released is typically at least
10% - 20%
of the working capital areas addressed
measured on a long-term basis*
*Why not ask for our historic performance details, and our
long-term measurement parameters?
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13. 2. WCOTM Working Capital Optimisation
Some Case Study Headlines
• Major frozen food manufacturer:
- stocks, receivables and payables optimised
- 16% overall improvement
- £14m released
• Plastics manufacturer:
- stocks, receivables and payables optimised
- 22% overall improvement
- €4.3m released
• Commercial stationers:
- receivables optimised
- 12% reduction
- €2.5m released
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14. 2. WCOTM Working Capital Optimisation
Case Studies
Major Challenges Overcome
• Provided new visibility of working capital and the days spent locked up
• Revealed decision-flows and processes driving working capital levels
• Enhanced understanding of others’ needs in order to perform better
• Improved useful communication between departments
• Created an environment promoting agreed viable changes and
motivating for change implementation
• Changed long-standing ingrained practices through provision of
information, communication, feedback and objectives
• Re-aligned organisational focus to include the cost of tying up capital
• Provided ongoing positive feedback on impact of agreed changes
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15. 3. Contacts Working Capital Optimisation
Can N&G help your Business run more
Efficiently on less Capital?
Contact us…
Michael Turner-Samuels
Principal, N&G Europe
Mobile: +44 (0)7831 867 718
Email: info@n-geurope.com
N&G Europe
10 Ellesmere Place
Walton-on-Thames
Surrey KT12 5AE
England
Tel: +44 (0)1932 243 977
Fax: +44 (0)1932 243 773
www.n-geurope.com
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