Before DLC
- Cash flow issues
- Limited visibility
- Issues stemming from a lack of oversight & governance
Case Study
Manufacturing Company Increases Returns on Capital Spend After FP&A Function Rework
After DLC
- Increased returns on capital spend
- Streamlined approvals process
- Defined governance process
Overview
The client – a leading international manufacturer of service truck segments – was undergoing significant transformational changes post-merger and needed FP&A support to ensure the accuracy of monthly capital expenditures.
Business Challenge
The client wanted to focus on capital spending to ensure they were able to leverage capital investments for gain. However, they lacked the necessary oversight and governance processes, leading to a series of cash flow issues.
Approach
After reviewing the client’s month-end close cycles, DLC’s experienced FP&A consultants quickly began to identify the gaps in the current process to develop a robust project plan.
The DLC team conducted a current vs. future state project assessment and ensured each capital expenditure project had a budget and a business case to help the client prioritize spend.
DLC consultants also prepared monthly reports to provide more real-time visibility of important financial information, outlined concise financial information for senior leadership to support reliable decision making, and automated financial reporting by leveraging the client’s existing data within PowerBI.
Lastly, DLC created a defined governance and standardized approval process to easily pinpoint any bottlenecks, save time and foster efficiency.
Results
DLC successfully provided the client with tools to develop a clear capital allocation strategy, make strategic decisions on capital investments, and set targets for growth and productivity improvements for sustaining capital expenditures.
