Amplio Group’s Research and Business Intelligence function is uniquely qualified to gather any supplementary data that may be required for meaningful comparisons between different organizations.
We provide scaled benchmark comparisons and studies for all three of the working capital functions: accounts receivable, accounts payable, and inventory. The comparisons can be scaled to virtually any sub-segment within almost any industry in virtually all jurisdictions.
The information gained through Amplio Group’s Benchmarking Services can range from relatively simple comparisons of standard performance metrics to trended performance metrics of the type that are used in operational reviews.
Amplio Group’s Benchmarking Services enable the type of understanding and self-examination that can form the basis for significantly improving working capital performance.
Amplio Group conducts Operational Reviews for clients recognizing a need for improved performance in specific operations, and for those organizations wishing to ensure that a "best practice" approach guides their working capital procedures.
Operational Reviews can be focused on one or more of the working capital components: accounts receivable, accounts payable, or inventory. These reviews are in-depth analyses of the elements that comprise the individual working capital disciplines.
The depth of information gathered during an Operational Review is considerable, but the analysis itself is conducted in such a way that it minimizes the use of operational resources. Significant streamlining and effective targeting is made possible by the expertise and experience of Amplio Group’s Review Team members.
Operational Reviews consist of the following:
- Data gathering and analysis (including benchmarking)
- Interviewing relevant personnel
- Observing relevant processes
The result of the Operational Review process is an authoritative and comprehensive Review Report. This report serves as a blueprint for implementing recommendations internally. If an organization requires external assistance, Amplio Group has expert resources available to lead the effort.
Outsourced Internal Working Capital Reporting
Amplio Group’s Outsourced Internal Working Capital Reporting service provides organizations with the comfort of broad, uniformly measured performance metrics for all or many of its individual operations.
Month-end internal working capital reporting is frequently problematic. Among the challenges that confront organizations are:
- Local measurement variations can render cross-subsidiary comparisons unreliable
- The "doing versus reporting" dichotomy. Human resources are scarce; therefore, their most productive deployment is in actual working capital duties, such as customer contact
- Internally generated reports seldom if ever provide management with a running benchmark comparing their organization’s performance within their segment(s)
- Metrics typically used to describe working capital performance do not provide the desired level of diagnostic depth
Amplio Group’s outsourced reporting service eliminates each of the above issues.
Data is electronically forwarded to Amplio Group and then rapidly and effectively converted into authoritative period-end performance reports. Full security is ensured thanks to Amplio Group’s strict confidentiality policy. Perhaps most important, Clients can be confident that the numbers generated represent a true, accurate, and unbiased assessment of current performance.
By outsourcing their period-end reporting to Amplio Group, Clients can concentrate on core responsibilities rather than complex and time-consuming report preparation.
Performance Optimization Partnerships
For those Clients that require third-party assistance in implementing working capital process improvements, Amplio Group offers the Performance Optimization Partnership.
It is often unrealistic for a growing organization to quickly develop and maintain an equivalent level of expertise to that acquired by Amplio Group’s professionals over the years. Therefore, frequently, the best way for comparable skills to be honed in a Client’s organization is through protracted exposure to Amplio Group’s specialists.
The Performance Optimization Partnership is an extended relationship between the Client and Amplio Group. For a fixed duration, a Project Team is deployed to the Client’s site on a full-time basis. Depending upon the specific requirements of the operation, these deployments can range from 3 to 24 months.
Clearly, the Performance Optimization Partnership requires close interaction and cooperation between the Client and Amplio Group. As such, much of the early emphasis is placed on relationship-building between the two organizations.
The Performance Optimization Partnership employs a variable fee arrangement tied to the success of the Client’s working capital improvements. As such, the Client and Amplio Group work together as partners to achieve maximum performance gains.
All Partnership Optimization Partnerships are unique, but they each have certain common attributes:
- Amplio Group shares in the "risks" and the benefits of the project with the Client
- Projects are designed to return incurred costs as soon as possible. They are only undertaken when a Client’s return on investment is expected to be greater than 200%
- Partnerships are of a fixed duration, but there are exit points enabling the Client to terminate the project without penalty should performance targets not be reached
- The underlying principle of the project is to permanently transfer knowledge and skills to the Client, thereby ensuring ongoing improvements
- When Clients want further reassurance that improved performance will continue after the project’s completion, "Oversight" phases can be executed with a greatly reduced Amplio Group presence
Working Capital Professional Development
Globalized commerce can present significant challenges and difficulties to management. The practices, procedures, and cultures of locations around the world may vary significantly from those of the head office. It is often difficult for newly posted personnel to overcome specific local objections to innovative approaches. The commonly heard refrain of "that won’t work here" often prevents the implementation of best practice approaches to working capital issues.
Amplio Group can assist in developing the knowledge base of both managers and operational personnel in all jurisdictions. The expertise and experience of our professionals can be harnessed and transferred through carefully constructed and executed professional development programs.
More often than not, the objections of local staff result from a lack of knowledge or expertise due to incomplete training and development. Certainly, a training approach may not be sufficient in and of itself particularly in certain challenging environments but it can prove very useful when only moderate improvements are required.
Amplio Group can design and implement training programs to meet the working capital needs of all Clients.