Vertically Integrated Energy Services Company Increases Cash Flow Visibility & Forecast Accuracy Through Automation
The Challenge
A vertically integrated energy services enterprise (“the client” or “the Company”) has oil exploration and production assets, as well as logistics, tool manufacturing, storage, and financial services business units. The Company has been challenged to build and maintain a central treasury function with timely and accurate cashflow forecasting processes, as well as a central credit function.
When the Company found itself looking for more efficient ways to improve its treasury activities across its portfolio companies, enhance cash flow, refine the credit management function, and optimize working capital, it turned to Opportune.
The Solution
Opportune’s business transformation professionals performed the following procedures:
- Assessed corporate-wide treasury activities across portfolio companies and reviewed credit functions and operations.
- Recommended corporate treasury software solutions through independent assessment and review, ultimately deciding on a platform.
- Built out enterprise cash flow forecasting processes.
- Automated bank interfaces to provide daily balance and transaction detail.
Business Impact
- Increased visibility into daily cash position and forecasting capabilities.
- Reduced reporting production time by 75% through automation.
- Achieved consistent creditworthiness analysis and terms creation, reducing the risk of bad debt scenarios.
- Streamlined organizational design through clearly defined roles and responsibilities.
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