rishabh nag

34% of the total invoices paid to the client were on manual invoices. There were no trails, or automatic invoices to bill in system (software) client used to track outgoing payments.

Client used to have 200-600 invoices issued on daily basis of which 34% invoices were manual and were not generated through software. Separate books were maintained for paperless invoices. There was no mechanism to reconcile physical invoice and book them system. No measure to check if the paper invoices were booked correctly in accounting books or not. Challenges such as duplicate payments and double payment and paid to incorrect vendors were looming in large. Such number of cases were not even tracked or traced back to the origin, as there were all manual invoices and no system booking were done in software. Just by checking system report no one can monitor/track the payment of these invoices. Management reports were showing any data related to these manual payment, hence incorrect reports were published

Early payments to vendors amounting ~ $ 1.5BN annually, Multi MN line items/ records to derive the causes negotiation with vendors. Business complexities in Implementation were huge

Every business performance is driven and dependent on working capital adequacy. In their Cash flow statement both the DPO days and DSO days almost the same. Thus, business was paying more than what they were recovering from clients. At times they had to take working capital loans to pay vendors and thus reducing the EBDITA by a substantial amount. In continuance of this approach in four years they took a hit on Free Cash Flow and thus reduced the dividends payment and EPS by 80 basis points

93 Vendors have an Impact of$900MN to $1.7BN on cash flow. Very Less visibility in, correlating vendor #s and contracts, Negotiated clauses Implementation tracking. Opportunity size ~$ multi BN

Estimated Cash impact of $ 1 to $ 2.50 BN ( Excluding 3 days of process time for Bank). Pushing DPO days can result in price increases by vendors. Have also started looking at the entire C2C cycle to ensure optimization at an overall level. Payment terms mix analysis: Insights on all 58+ Payment terms how its behaving and contributing to the overall DPO days giving analysis on:

Supplier Stratification under each payment term slabs over all.

Cluster of Payment terms with vendor lists for decision making

Payment terms wise Forecasted for next 6 months

Movement to New Payment terms, its forecasting and the performance.