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ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Steps to Successful Working Capital Optimization

June 30, 2010


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ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

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Agenda

Page

I t d ti – Working
Introduction W ki Capital
C it l 1

Days Payables Outstanding Optimization 8

Days Sales Outstanding Optimization 15


ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Manage
g successful working
g capital
p initiatives 21

1
Volatility for issuers and investors has been unprecedented

Cost of Borrowing vs. Yields … Spread differential between Tier I vs. Tier II Money market yields

„ Cost of borrowing has varied 600


Tier I Non-Financial
Non Financial 7%
widely
id l recently
tl 500 3 Month T-bills
Tier II Non-Financial 6%
„ Tier 1 CP issuers benefited 400 90 Day CP
LIBOR
from the flight to quality 5% 90 Day ABCP
300
throughout the crisis
200 4%
„ Tier II market was closed or
was prohibitively expensive 100 3%
0
2%
„ Returns on corporate cash
(100)
portfolios have declined and 1%
now have a measurable EPS. (200)
0%
impact
p for most companies
p ((300))
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
Jan-08 Mar-08 Jun-08 Aug-08 Nov-08 Feb-09 Apr-09 Jul-09 Oct-09 Dec-09 Mar-10
Source: Federal Reserve as of March 9, 2010

Working Capital Trends … REL 1000 Working Capital Study 2010

„ Average
g Days
y Working
g Capital
p ((DWC)) increased 32.7 33.0 33.4 33.5 33.0
32 3
32.3
by 8.2% from 2008 to 2009 – the biggest DWC 29.7
INTRODUCTION – WORKING CAPITAL

deterioration over the last 5 years 48.7 48.0 47.7 47.5 48.6 46.3
40.8
„ DSO increased by 10.4% from 2008 to 2009
„ DPO improved by 13.4% in 2009; which
37 6
37.6 37 6
37.6 37 3
37.3 39 3
39.3 37 7
37.7
signifies
i ifi iincreased
d ffocus on payables
bl within
ithi 36 7
36.7 34.2
corporations 35.6 37.3 37.8 38.0 38.9 38.3
35.4
„ DIO increased by 10.7% in 2009 which shows
that organizations are building up inventory
2003 2004 2005 2006 2007 2008 2009

DWC DSO DPO DIO

2
Working capital improvements are made by streamlining complex operational
processes across the organization
Your Customers Your Company Your Suppliers

Customer-to- Purchase-to-Pay Forecast-to-Fulfill Customer-to- Purchase-to-Pay


Cash Cash
Manage
Sell Source Product Sell Source
Range

Plan
Process Order Order Forecast Process Order Order
Production

Distribute Receive Make Distribute Receive

Process Process
Invoice Invoice
Invoice Invoice
INTRODUCTION – WORKING CAPITAL

Collect
Pay Suppliers Collect Pay Suppliers
Payment

T
Treasury
Manage short Ensure funds Manage short Ensure funds
term funds availability term funds availability

Bank Medium / LT Risk Financing &


Cash Mgmt. Cash Mgmt.
Relationship
p Investments Mitigation
g Debt

3
Impact of working capital on shareholder value

Shareholder Value Operational Returns Working Capital Improvement

ƒ Enhanced customer service,


Revenue
ƒ New distribution and sales channels

Profitability ƒ Reduce cost of capital through competitive financing


ƒ Minimize risk & exposure (counterparty, interest rate, FX, commodity)
ƒ Minimize margin erosion
Costs ƒ Best structure (BPO, shared services, payment factory)
ƒ Lower COGS: transportation, warehousing, handling & distribution
Shareholder Value

ƒ Liquidity
Li idi M Management ((optimize
i i return and
d mitigate
ii risk)
i k)
Working
INTRODUCTION – WORKING CAPITAL

ƒ Purchase to Pay – Trade Payables (DPO)


Capital
ƒ Customer to Cash – Trade Receivables (DSO)
Invested ƒ Forecast to Fulfil – Inventory (DIO)
Capital

ƒ Improve physical asset performance


Fixed Capital
ƒ Outsourcing

4
By focusing on the operational processes to drive sustainable change, working
capital initiatives also impact revenue
revenue, cost and service

• Reduction
Red ction in spend
• Reduction in obsolescence (SLOB’s)
Working Capital
• Reduction in reserves/write-offs
Is The Cheapest
• Reduced warehousing & distribution costs
Source of Cash
• Reduced transportation costs

• Improved sales efficiency


• Reduction in transaction processing costs
• Increased standardization and automation
• Decreasing trade
receivables
•Lower cost of borrowing • Decreasing inventories
•Lower borrowing requirements • Increasing trade payables
• Reduced cost of capital
p o ed access to ccredit
• Improved ed t facilities
ac t es
INTRODUCTION – WORKING CAPITAL

•Improved Capacity Utilization

Sales COGS SG&A Other Interest D&A Net Income D&A, Fin, Chg in WC Cash Flow
Invest from Ops

5
Case study – Global specialty chemicals & materials company
Working capital improvements and stock price
Situation in Q4, 2008…
ƒ Liquidity in question

ƒ Operating costs misaligned with strategy

ƒ Demand swiftly declining

Days Outstanding versus Stock Price


What did the organization do? 120 $50
ƒ Restructured

ng
ys Outstandin
100 $40

Stock Price
e
ƒ Manufacturing & supply chain, G&A 80 $30
functions, R&D refocused
60 $20
ƒ Paid down/refinanced our debt
Day 40 $10
improving liquidity profile
INTRODUCTION – WORKING CAPITAL

20 $0
ƒ Amended debt to EBITDA covenant Dec '08 Mar '09 Jun' 09 Sep '09 Dec '09 Mar '10

Stock Price AR-DSO Inventory-DOS AP-DPO


ƒ Maintained investment grade rating

All made possible by cash from working capital initiative

6
INTRODUCTION – WORKING CAPITAL

7
Agenda

Page

I t d ti – Working
Introduction W ki Capital
C it l 1

Days Payables Outstanding Optimization 8

Days Sales Outstanding Optimization 15


ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Manage
g successful working
g capital
p initiatives 21

8
Symptoms of inefficient working capital – days payables outstanding

„ Characteristics of inefficient payables function that can represent opportunity for


improvement
„ Frequent payment runs
„ Large number of suppliers including duplicate suppliers in the system
„ Lack
L k off standardized
d di d payment terms
„ Multiple payment terms with the same supplier
„ Lack of payment term approval mechanism
„ Credit
C dit sanctions
ti iimposed
dbby suppliers
li
„ Large interest / additional charges for late payments
DAYS PAYABLES OUTSTANDING OPTIMIZATION

„ Increase in payment disputes


„ Lack of rebates through p
p-card,
card single use accounts
„ Inaccurate forecasting of disbursements (inaccurate cash flow forecasting)

The challenge is to balance conflicting objectives between working capital


targets and other business targets

9
Driving cash from the purchase to pay process

CURRENT: Days Payable Outstanding : 39 days

Not Yet Due Overdue


Category
Invoice
Terms Disputes Payment
Registration
7 2%, 10 Net 30 2 1
# of days
y

Key Performance Indicators / Reporting

ƒ Payment Clock ƒ Standard payment terms linked to Procurement ƒ Rapid dispute ƒ Fixed payment
starts on latter Commodities with clearly defined payment terms and resolution cycles – 2 x per
of invoice or conditions ƒ Automated month, monthly
goods receipt ƒ Single payment term for each supplier workflow for ƒ Electronic
DAYS PAYABLES OUTSTANDING OPTIMIZATION

ƒ EDI / ƒ Procurement aware and incentivised on the value of invoices payments


Improvement Centralised W ki C
Working Capital
it l requiring ƒ E
Early
l payments
t
Area receipt & approval eliminated
scanning of ƒ 99% of Purchase orders covered by a “system” PO
ƒ On-time
invoices ƒ 99% of goods / service deliveries covered by a “system payment is a
generated” goods / service receipt key priority
ƒ Continuous maintenance of supplier master data
concerning terms and contract related details

FUTURE: Days Payables Outstanding : 45 days

10
Cycle time comparison across payables solutions

Below is a cycle time comparison across various payable options available to an organization
Illustrative
PAYABLES MANAGEMENT PROGRAM – CYCLE TIME ANALYSIS

Improve Operational Efficiency Provide Supplier Liquidity Options


Dynamic Discounting Supply Chain Finance
P-Card Single-Use Account (SUA)
((OTP)) ((Return > WACC)) ((Return < WACC))

Payables Cycle Extend Terms 15* days… Extend Terms 15* days…

i. Purchase Goods Day 1 thru 30 Day 1 thru 30 Day 1 Day 1

ii. Invoice Approval N/A (no Invoice) Day 10 thru 40 Day 10 Day 10

iii P
iii. Pay S
Supplier
li D 1 th
Day thru 30 D 10 th
Day thru 40 D 10 ((early)
Day l ) or D
Day 45 (t
(term)) N/A – JPM P
Pays supplier
li

iv. Card Statement Day 30 Day 40 N/A N/A

v. Client. Settlement Day 44 (14 day grace) Day 54 (14 day grace) Day 36 (on avg.) Day 45 (to JPM)
DAYS PAYABLES OUTSTANDING OPTIMIZATION

Avg. DPO Cycle: 30/2 + 14 = 29 days (10+40)/2 + 14 = 39 days 36 days 45 days

Standard Terms: 30 Days 30 Days 10 Days (early); 45 days (term) 30 Days (current DPO)

Payment Type: 29 Days 39 Days 36 Days (on avg.) 45 Days

Payment Type vs. Std. Terms DPO Impact: -1 Days DPO Impact: + 9 Days DPO Impact: +6 Days DPO Impact: +15 days

ƒ Earn rebates (i
(i.e.,
e 1 1.00%)
00%) ƒ Increase DPO ƒ Self-fund
Self fund early payments while ƒ Increase DPO
increasing DPO
ƒ Reduce invoice and ƒ Earn rebates (i.e., 1.00%) ƒ Improve supplier
payment transaction cost ƒ Earn high returns (2.00% for relationships by providing
ƒ Reduce payment transaction
Benefits 20 days early = 36.50% supplier liquidity at a
cost competitive rate
return)

ƒ Improve supplier relationships


by providing liquidity options

11
Considerations to improve payables operations

World-Class Procure to Pay organizations invest in technology to:


Process transactions for significantly less than their peers (up to 2.5 times less)
I
Increase throughput,
th h t enablingbli ththem tto ttake
k early
l paymentt di
discounts
t

Considerations Maturity J.P. Morgan Solutions


gh

gh
Hig

Hig
Order To
Two-way match of invoices requires system ERS Pay
enhancements but derives substantial benefits

on
Web based EDI
Web-based Order To
Deploying web technology to develop central

Transaction costs reductio


transactions Pay
control, develop PO program to support process
vel of effort
DAYS PAYABLES OUTSTANDING OPTIMIZATION

P-Card / Expense cards programs yield P-Card,


CARD/ Expense Card SUA
strong
s o g be
benefits
e s in the
e form
o o of rebates
eba es a
and
d
Lev

lower costs

Order To
Imaging technology Outsourcing with Pay
Minimizes change management for with OCR / ICR offshore processing
supplier and drives automation

To gain process efficiency a strong Core Pay


Centralized invoice receipt, policy and procedures, Cash Source

Low
foundation needs to be vendor / item master and integrated payment structure
Low

established

12
Case study – Auto parts retailer
Supply Chain Finance (DPO extension)

Program Specifics
Business:
B i Auto-parts
A t t retailer
t il
Objective: Extend supplier payment terms to better match with inventory turns
Solution: Initiated Supply Chain Financing (SCF) in 2003 in the U.S. to support terms extension; expanded to
Asia in 2007 when began sourcing in China. Discussions underway to expand to Latin America.
Spend size: Approximately $150 million with J.P. Morgan; multiple providers total approximately $1 Bn annually
Buying entities: Supporting 2 buying entities in the U.S
U S and 1 in Asia.
Asia
Suppliers enrolled: Approximately 50 strategic suppliers located in the U.S., H.K. and China

Maximizing Auto Part Retailer’s benefit

DPO benefit*: DPO increase of 117 days


Cash Flow benefit*: Cumulative free cash flow increase of $978 million
DAYS PAYABLES OUTSTANDING OPTIMIZATION

Competitor with
Retailer with SCFSCF
250 Auto Parts Retailer
Competitor with Improved
with SCF SCF Improved
CashCash Flow
Flow
Competitor 2
$ Millions
Competitor 3 1,000
200 900
bles Outstanding

800
150 700
600
500
100
Days Payab

400
300
50 200
100
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006 2007 2008

13
DAYS PAYABLES OUTSTANDING OPTIMIZATION

14
Agenda

Page

I t d ti – Working
Introduction W ki Capital
C it l 1

Days Payables Outstanding Optimization 8

Days Sales Outstanding Optimization 15


ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Manage
g successful working
g capital
p initiatives 21

15
Symptoms of inefficient working capital – days sales outstanding

„ Characteristics of inefficient receivables function that can represent opportunity for


improvement
„ Increasing bad debt levels
„ Increasing balance of past due receivables when compared to revenues
„ Large
L number
b off customer billi
billing / iinvoicing
i i complaints
l i (di
(disputes)
)
„ Large number of claims and adjustments
„ Large number of short payments as part of payment receipt
„ Large
L number
b off exceptions
ti d
during
i paymentt application
li ti
„ Increased credit limits on customers due to frequent credit stop
„ Inaccurate cash flow forecasting
DAYS SALES OUTSTANDING OPTIMIZATION

„ Use of non electronic methods of payment receipt

16
Driving cash from customer to cash cycle

CURRENT: Days Sales Outstanding : 52 days

Not Yet Due Overdue


Category
Unbilled Terms Disputes / Rebates Collection Cash App

# of days 5 30 10
0 10 2

Key Performance Indicators / Reporting

ƒ Billing at ƒ Adherence to credit policy, short ƒ Proactive dispute ƒ Credit limit and ƒ Electronic
point of standard payment terms with identification scoring transfers
shipment / escalation for exceptions ƒ Root cause eradication ƒ Customer ƒ Automated
service ƒ Sales team aware and incentivized programs Segmentation allocation
delivery
DAYS SALES OUTSTANDING OPTIMIZATION

on the value of Workingg Capital


p
Improvement ƒ Rapid resolution,
resolution ƒ Collection Strategies ƒ Account
ƒ Milestone ƒ Down-payment requests for ownership and auto- Recon-
Area billing in line ƒ Pro-active Calling
contract work escalation ciliation
with contract ƒ Dunning letter
progress ƒ Rebates / incentives / volume
discounts not linked to product
ƒ EDI invoicing
invoicing

FUTURE: Days Sales Outstanding : 45 days

17
Levers to minimize credit risk through dynamic credit limit setting process

„ Develop credit management strategy based on 3rd party rating, internal customer payment history and
financials

„ Create dynamic credit limits to match changes in customer order patterns and risk

„ Establish process to manage exceptions to scoring model


Classification
Risk Grade
Risk Grade Data 1 2 Grand Total
Grand Total
Risk Scoring Strategy Credit Limits A Total AR$ $10,861,055 $11,294,044 $22,155,099
No. of Customers 41 1,649 1,690
PD% 0% ‐4% ‐2%
• Set credit limits WADP 34 28 32
• Industry based on: Sum of Inv Amt $142,020,465 $85,454,433 $227,474,899
• Risk classification
evaluation • Industry B Total AR$ $24,376,303 $13,015,215 $37,391,518
based on organization
g
• Credit Limit • 3rd party evaluation N fC
No. of Customers 41 471 512
risk and objectives
• % On Cash (D&B) PD% 18% 30% 22%
• Internal Information WADP 41 37 40
Sum of Inv Amt $124,861,157 $37,902,671 $162,763,829
• 3rd party C Total AR$ $39,285,552 $11,038,795 $50,324,347
• Manage exceptions No. of Customers 57 431 488
evaluation
DAYS SALES OUTSTANDING OPTIMIZATION

• Credit limit adjustment (credit on hold, credit PD% 33% 54% 38%
• FSS,
FSS D&B
increase etc.) WADP 48 46 48
• Paydex Sum of Inv Amt $202,222,255 $37,560,578 $239,782,833
D Total AR$ $20,681,296 $8,324,685 $29,005,982
• Update credit limits: No. of Customers 39 164 203
• Internal info.
• New industry PD% 51% 63% 55%
evaluation • Collection strategies
trends WADP 46 50 47
• % Current based on risk
• Updated 3rd party Sum of Inv Amt
Sum of Inv Amt $150 406 377
$150,406,377 $20 983 469
$20,983,469 $171 389 846
$171,389,846
• Pay History classification and credit
risk score F Total AR$ $106,776,281 $45,764,660 $152,540,941
• Yrs. of limit adjustments No. of Customers 128 1,010 1,138
• Internal payment
business PD% 57% 72% 61%
history
WADP 64 76 66
Sum of Inv Amt $431,802,686 $89,184,298 $520,986,984

18
Levers to optimize working capital through payment receipt and application
„ Improving working capital across the customer to cash cycle requires an optimized & comprehensive payment strategy
which focuses on reducing transaction costs and mail float by increasing electronic adoption rate supported by real time
payment
p y reporting
p g and exception
p management
g

Adjustments

Write-offs
Payment Channel Strategies DSO Impact
Fraud

■ Lockbox footprint proximity


■ Real-time credit posting and visibility
■ Electronic conversion of checks
-1 to -2 days
Mail-in ■ High Straight Through Processing (STP) rates &
electronic exception workflow
■ Consolidated and matched remittance
Revenues Collectable
Revenues

Net of pricing ■ Minimize overnight batch payments with daily posting of


cash/checks through:
DAYS SALES OUTSTANDING OPTIMIZATION

changes & Service center,


-2 to -5 days
rebates
b t Walk in Drop box
Walk-in, ■ Cash vault
■ Image based solutions

■ Enable flexible web/phone payment options:


■ One-time, recurring or future dated
Web / Phone ■ ACH, Debit or Credit Card -2 to -7 days
■ Enable CSR/collectors initiate customer payment
■ Electronic consolidation of home banking feeds

19
DAYS SALES OUTSTANDING OPTIMIZATION

20
Agenda

Page

I t d ti – Working
Introduction W ki Capital
C it l 1

Days Payables Outstanding Optimization 8

Days Sales Outstanding Optimization 15


ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Manage
g successful working
g capital
p initiatives 21

21
Approach for optimizing working capital

Phase 1: Phase 2: Phase 3: Phase 4: Phase 5:


Assess “Deep Dive” Analysis Design, Pilot Projects, Implementation Roll-out Sustainability & On-
Q i k i and
Quick-wins d KPI
KPIs G i Improvements
Going I t

Main Objectives Main Objectives Main Objectives Main Objectives Main Objectives
ƒ Working capital ƒ Deep dive process, ƒ Mobilization and initial ƒ Commence transfer of ƒ Ensure conformance to
assessment by policies & tools review realization of Quick wins responsibilities to implemented processes
geographic / business Working Capital and tools
line / legal entity ƒ Conduct analysis of ƒ Identify pilot projects to champions
incentives and their build / design / ƒ Fulfil role of trusted
ƒ Root cause analysis to alignment across the recommend ƒ Roll-out process, KPI’s advisor
identify linkages organization structure ƒ Process and tools enhancements
between performance ƒ Policy in a prioritized sequence
and companyp yggoals / ƒ Identification of benefit ƒ KPIs and incentive
MANAGE SUCCESSFUL WORKING CAPITAL INITIATIVES

objectives. potential ƒ Third party solutions ƒ Build benefits stream

ƒ Establish Working ƒ Identify incremental


Capital champion role enhancements

Main Outputs Main Outputs Main Outputs Main Outputs Main Outputs
ƒ Benefits quantification ƒ Identification of “quick- ƒ Mobilization and ƒ Implementation of ƒ Continuing delivery of
wins” realization of quick wins recommendations improvements
ƒ Identification of key (process, tools, metrics)
drivers of Working ƒ Business case ƒ Plan for roll out of policy, ƒ Progress against action
Capital
p p
performance ((recommendation,, process,, KPIs,, tools and
p ƒ Realization of benefits plans and improvements
p p
improvement benefits, level of effort ) incentive enhancements
ƒ Knowledge Transfer and ƒ Issue resolution
ƒ Implementation ƒ Orientation and training training
approach of Working Capital
champions and staff ƒ Tracking of benefits and
achievement of Action
Plans

22
Successful working capital initiatives require a cross functional team
team…

ƒ Address strategic issues


ƒ Review progress against ƒ Set targets
targets Executive
ƒ Finalize
Finali e initiatives
initiati es (business
(b siness case)
ƒ Set organization-wide Steering
ƒ Monitor progress
expectations Committee
ƒ Provide cross-functional support

Working Capital Council

ƒ Build tactical work plan


ƒ Ensure progress against
set targets
ƒ Develop and validate
MANAGE SUCCESSFUL WORKING CAPITAL INITIATIVES

business case
ƒ Implement and operate
Customer To Cash Purchase To Pay Forecast To Fulfill Treasury Operations

Sales Purchasing management Operations Bank Relationship


Sales order processing Product development
Sourcing / Buyers Short Term Funding
Customer Services Forecasting
Budget Holders
Sales order processing Long Term Funding
Credit risk management
Production Planners Purchasing
Order fulfillment Risk Management
Materials Production scheduler(s)
Billing
Production planners Cash Forecasting
Goods-In, Receiving
Collection / A/R Production
Accounts Payable Cash Management
Payment Receipt Warehouse
Payment
ay e Application
pp ca o Cash disbursement Distribution Investments

23
To track benefits a framework establishing visibility across headline and
operational KPIs is needed

WC Performance ƒ CEO, CFO, COO, CPO, CIO


/ Operating
Cash Flow

Managerial Metrics
ƒ Treasurer
ƒ Controller
Accounts Accounts
Inventory ƒ VP (Finance, Operations)
MANAGE SUCCESSFUL WORKING CAPITAL INITIATIVES

Payable Receivable
Management
Management Management ƒ Director
ƒ Senior Manager /
Manager
Operational Metrics
ƒ Project
j Manager
g
ƒ Functional
Customer to Cash Specialists
ƒ Lean / Six Sigma
Purchase to Pay Forecast to Fulfill Specialists
ƒ Third Party
Treasury Operations
Resources
ƒ Change
Management
ƒ Communication
S
Specialists
i li t

24
MANAGE SUCCESSFUL WORKING CAPITAL INITIATIVES

25
ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Questions and answers

26
?
Team overview

JPMorgan Chase & Co. REL (The Hackett Group)


JPMorgan Chase & Co. (NYSE: JPM) is a leading global REL, a division of The Hackett Group, is a global
financial services firm with assets of more than $2 trillion and consultancy that has helped many of the world's leading
operations in more than 60 countries. Treasury and Securities businesses release billions of dollars of cash through
Services highlights are below sustainable working capital improvements. REL was founded
in 1975 in London, England, and was acquired by The Hackett
„ World’s largest cash management provider, processing up to
Group in 2005. REL's only line of business over its continuing
$5 05 ttrillion
$5.05 illi iin U
U.S.
S ddollar
ll ttransfers
f d
daily
il and
d managing
i $15
$15.2
2 35-year history was and is working capital management
billion in assets under custody consulting services.
„ As much as 600,000 US Dollar Wire Transfers Processed on
REL focuses on three critical end-to-end process streams,
a Single Day, 2009
ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

with dedicated practices to increase cash flow and service


„ Averaging 365,000 Daily Wire Transactions for a Total of $3.1 performance while reducing costs and business risks across:
Trillion, 2009 „ Source-to-Settle (Accounts Payable),
„ Treasury & Securities Services Does Business with:
„ Forecast-to-Fulfill (Inventory Management), and
„ 96% of the Forbes Top 100 List ((source: Forbes Magazine,
g
04/10) „ Customer-to-Cash (Accounts Receivable).
„ 96% of the Top 50 Global Companies (source: Financial www.relconsultancy.com
Times, 09/09)
„ 98% of the Fortune 100 Companies (source: Fortune 2010 Working Capital Study:
Magazine 06/09)
Magazine, http://www.relconsultancy.com/workingcapital/
„ 98% of the Top 50 US Banks (source: FDIC, 09/09)
„ 92% of the Top 50 S&P Companies (source:
Working Capitalist Newsletter:
BusinessWeek.com, 06/09) http://www.relconsultancy.com/research/workingcapitalist/

27
Presenter biography

Rohit Godara

Vice President Rohit has over nine years of professional experience of which
J.P. Morgan Treasury Services six years has been in the capacity of a management
consultant; helping clients in industries such as
Tel: (212) 552-6563
communications, media, technology, pharmaceutical and life
Fax: (212) 552-5199 sciences, client services and retail organizations.
rohit.godara@jpmorgan.com
hit d @j
Rohit’s work has included revenue assurance, financial
Rohit Godara is a Vice President with J.P. Morgan Treasury & transformation (in order to cash, procure to pay), financial
Securities Services. As a senior advisor with the Treasury modeling, financial close and reporting, regulatory
compliance, operational process improvement and systems
ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

Services Advisory Solutions team, Rohit works with his partners


in sales and product to engage large corporate clients in use and security
security.
strategic conversations to address key priorities across global
Prior to joining J.P. Morgan, Rohit was a manager with
treasury operations such as working capital, debt, investments
PricewaterhouseCoopers’ advisory practice where he helped
and tactical process improvements.
clients realize efficiencies through emerging technologies,
His constant focus is to provide best practice solutions to help organizational restructuring and process improvements via a
solve the client’s significant challenges including cash metrics
t i and d kkey performance
f iindicator
di t d driven
i approach.
h R Rohit
hit
forecasting, expense management, efficiency improvements, in his role as a Manager assisted the PwC Private Equity
compliance, bank relationship management, communication and group to develop a Working Capital Management optimization
change management. His current areas of specialty and viewpoint (order to cash, procure to pay, forecast to fulfill) to
expertise include working capital optimization, cost reduction target portfolio companies in an effort to enhance revenues for
th
throughh strategic
t t i and d tactical
t ti l sourcing,
i revenue assurance and d the firm.
firm Additionally Rohit was a recipient of the Chairman's
Chairman s
enterprise risk management. Award during his tenure at PwC Advisory Services.

Rohit received his MBA in 2001 from The University of


Arizona and holds an undergraduate degree in Business
Administration from University of Delhi, India.

28
Presenter biography

Marcus Homeyer

Marcus joined REL in Germany before


Project Manager transferring to the Americas in 2006. Since then
REL - A Hackett Group Company he has worked on projects in North America,
Tel: (917) 547-7900 Europe and Asia.
mhomeyer@relconsultancy.com
h @ l lt
Marcus’ work has included financial
transformation for customer to cash and source
to settle processes, design and implementation
Marcus Homeyer is a Project Manager in The Hackett
ONLINE SEMINAR SERIES: STRATEGIC CLIENT DIALOGUES

of inventory management processes, operational


G
Group’s ’ REL T
Total
t lW
Working
ki C Capital
it l P
Practice.
ti H
He process improvement, KPI development, and
focuses on implementing best practice solutions to systems improvement.
improve cash flow, reduce costs and improve
customer service. His expertise is in working capital Prior to joining REL, Marcus worked in
g
management, , accounts receivable,, accounts payable,
p y , publishing
p g operations
p at Random House,, Inc.
supply chain management, planning, and order where he focused on inventory management
fulfillment. and safety stock optimization.

Marcus has been a member of the REL team since Marcus received his M.Sc. in General
2005 and has lead or contributed to projects in various Management from Stevens Institute of
industries including consumer goods, oil and gas Technology, NJ in 2001 and his Dipl.-Ing. (M.Sc.)
equipment services, household durables, specialty in Industrial Engineering from Technische
chemicals, office supplies, book publishing, and Universität Berlin, Germany in 2004. In addition,
pharmaceuticals. Marcus did MBA coursework at Fordham
University, NY.

29