Global Retailer Uncovers $1.3B with Working Capital Management Improvements

Challenge: Getting Full Access to Working Capital Across Regions

This global retailer had regional Shared Service Centers and their country CFO’s running their business at different levels of maturity. This resulted in fragmented data visibility across regions, low automation, lagging working capital, and inconsistent supplier management. These silos led to conflicting data sets, different stakeholder requirements, and unique local business scenarios. Not having access to this data and working capital can affect buying power, cash flow and overall inefficiency due to these key reasons: 

• Inconsistent supplier payment terms across regions can be difficult to track 

• Less automation can mean more manual processes that can affect accuracy and speed  

• Inability to recognize discount opportunities due to fragmented supplier data 

• Risk exposure from inconsistent supplier compliance standards 

• Limited visibility into payment timing affecting forecasting accuracy

Solution: Implementing a Best Practices Approach to Working Capital Management

PRGX worked closely with the global retailer to take a step-by-step approach across their financial operations to unify data views and apply best practices insights for a significant ROI. The overall result of this comprehensive Working Capital Management program was $1.3B in potential savings and recovery opportunities, including $300M in estimated spend saving opportunities to improve immediate and long-term business health. The PGRX team was deployed strategically across the globe in a coordinated effort to deliver country-specific priorities through these four main solutions:

AI-Powered Analytics 

• Deployed Spend & Payment Insight™ technology to analyze Days Payable Outstanding (DPO) 

• Conducted deep-dive analysis of transaction-level data including invoices, POs, requisitions, and vendor records 

• Identified over $1B in DPO optimization opportunities across UK, Canada, and Mexico operations 

Advisory Services 

• Led AP transformation and Spend Visualization initiative in South Africa operations to enable data-driven decisions 

• To capture a holistic view, used Spend Visualization capabilities to identify: 

• Spending patterns and trends 

• Payment timing anomalies 

• Consolidation opportunities 

• Cost reduction potential 

AP Profit Recovery Audit  

• Executed comprehensive AP Profit Recovery Services audit across all 14 markets 

• Combined advanced audit technology with industry expertise 

• Focused on root causes of issues to discover immediate and long-term value 

• Identified $30M in annual recoveries

Supplier Information Management (SIM) 

• Implemented SIM program in Mexico operations to: 

• • Enhance supplier data quality and compliance monitoring 

• • Improve payment accuracy and working capital management 

• • Strengthen supplier relationship management capabilities 

Ready to Improve your Working Capital Management with Data-Driven Insights? 

PRGX can help your organization have 360º visibility and whole business impact with Source to Pay (S2P) insights that drive key financial decisions for the organization. Just in the past year, PRGX has analyzed $2.3T client spend with $2.3B client revenue across industries and services, yielding 10x average ROI.   

Get a clear view of your data across your entire organization to drive immediate gains and long-term success. Chat with us about your goals and our team of experts will make sure you maximize the financial health of your organization or see our solutions in action in a demo.