Optimising working capital for a global publishing and education company.
Brivan helped the company utilise its idle funds better and devise a proper working capital policy for substantial returns.
Background of the case
The client is a global publishing and education company based in London, England. It began as a building company in the 1840s, before transitioning to publishing in the 1920s.
Problem & Undertakings
The client wanted a solution for the constant idle funds in their current account. Our responsibility was to identify those idle funds in the current account in the banking module and optimise the working capital.
Approach & Solution
- A comprehensive working capital policy was devised.
- A regular short-term investment strategy was created to optimise idle account balances.
- SOPs for daily monitoring, banking, and management reporting were established.
- Coordination with the procurement departments was facilitated to ensure that the vendor and employee payments were never delayed.
The idle funds in their current account were invested in an effective manner, through which our client earned INR 20 million approximately. An efficient working capital management system was implemented to improve the business’ performance, efficiency, and return generation.