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A mid-size trading company came to OILspace unable to determine working capital utilization and its effective
use of working capital. They had no internal cash flow management system and were relying on cash flow position
sheets from several individual banks which were confusing and in different formats. Deals were entered into
their deal entry system, then re-entered into spreadsheets for invoicing. This caused multiple problems including
delayed payments which forced the company into damage control situations; the inability to finance projects they
knew would be profitable which lead to lost opportunities in the millions; and expensive financing costs. They
simply could not project cash flow or the effectiveness of how they were managing working capital.
OILspace Solution: The solution required the implementation of the OILspace Energy Service Bus (ESB) real-time
messaging and integration platform, ASPect Office Profit & Loss functionality and the full Financial
Operations component of ASPect Office. All data was integrated from several systems so back-office staff was no
longer required to re-enter invoicing information into Excel, and ASPect Office now generates invoices. Internal process
controls were implemented for data entry, invoicing, payment generation and verification against relevant documentation
and original deal information. With ASPect Office P&L functionality, new financial reporting now allows
management to plan and monitor capital utilization based on cash position and minimum capital usage calculations
by strategy and group of trades. Capital requirements and availability are tracked. Management is able to
measure, manage and improve planning deviations to improve cash flow. The annual benefit in new opportunities
is in the USD 2 million range, and human resource savings upwards of USD 500K.
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Avoid unnecessary invoicing losses and gain real-time
insight into the financial health of your enterprise.
Click Here To Request Info. |
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