Data Analysis Improves Payables Forecasting
Client: A mid-tier consumer products company
Challenge: Brown Smith Wallace was engaged after the payables forecast was exceeded by three times in the actual payment run that week. That created a stress on their banking position, and they wanted to be better prepared.
Solution: Brown Smith Wallace mapped processes, dove into the data, and identified that there was additional data that could be added immediately to the forecast, improving the two to eight-week forecast significantly. Additionally, days of sales outstanding hid large variances in the company’s ability to collect from customers. A project was launched to clean up data and receive payments, with immediate results.