A multi-disciplinary group whose goal is to ensure cash maintenance, support the renegotiation of existing contracts/agreements, and review standards, policies and rules for fund disbursements. This management tool helps create an austere spending culture.
For whom ?
For companies that may or may not be under cash pressure and need to create and disseminate a cash preservation culture.
- Define the Committee scope of action - Prepare the bases (daily cash flow, purchase orders/requisitions, accounts payable and receivable) - Define who will be on the Committee (multi-disciplinary group) and how often it will meet - Send memo to the entire company informing of the start of Committee activities - Kick off the Committee - Companies pressured for cash: focus on prioritizing payments and renegotiating with suppliers to make sure it has enough working capital to operate - Companies not pressured for cash: focus on the period prior to contracting, addressing purchase orders/requisitions and reviewing disbursement standards, policies and rules to avoid expenses that do not add value to the business
- Cash flow aligned with the company's needs - Disciplined purchasing/investment processes - Increased value creation for the business