Freed up $10 mm in Working capital
Business Type: Leading medical device company
- Challenge:
- $10 mm in stretched receivables with a high risk of write-offs
- Significant reduction of working capital
- Action:
- Revised sales incentive structure to include receivables management
- Created and regularly reviewed a receivables dashboard with sales leaders in weekly meetings
- Led hospital/clinic visits and negotiations with the sales team
- Shifted a key sales segment (>35% value) to 100% advance payments
- Trained the team to manage buyer concerns and pushbacks effectively
- Recognized and rewarded contributions to improved DSO during South Asia calls and meetings
- Impact:
- Freed $10 mm in cash flow, reduced DSO from 200 to 30 days without major discounts
- Strengthened team morale and buyer relationships