Manage any financial impact
Volatile financial markets, instability in supply chains and increased costs could put pressure on the financial performance of organisations.
Our dedicated team of experts can help you navigate these changes.
Brexit might change how you manage...
Cumulative cost increases
Brexit may cause price and cost rises across the organisation. Margins may be eroded by changes to currency values, the introduction of tariffs and rising labour costs. While each may be small, taken together the impact could reduce the viability of an organisation.
Delays or distress in the supply chain may lead to problems in recovering cash from customers and suppliers, putting pressure on your cash flow position.
Changing payment terms
Some organisations are seeing extended payment terms being introduced by key suppliers, which is putting pressure on their cash positions.
Three things you can do now
Optimise your cash flow positions
- – Review current working capital processes and identify inefficiencies in the cash conversion cycle
- – Strengthen cash flow forecasting processes and assumptions
- – Implement short-term cash flow management processes and reporting
- – Review inventory management and stock keeping strategy to ensure appropriate levels of inventory are held
- – Assess and understand impact of cash flow projections on debt and covenants
Reduce cost base
- – Review your current operating model to identify any efficiencies
- – Baseline and prioritise areas of greatest opportunity to reduce cost (improve value)
- – Optimise value adding activities to create a lean cost structure
Engage your supply chain
Most financial pressures will be felt through the supply chain. Working with key suppliers to help them navigate the uncertainty could reduce the risks to your own organisation.
- – Identify critical suppliers (including key materials, logistics support and employment agencies)
- – Speak to critical suppliers to explore concerns and key issues
- – Develop a shared Brexit plan with suppliers
- – Agree actions or identify alternative suppliers
- – Communicate with the supply chain around Brexit plans