Practus assisted the IT firm in reducing DSO from 93 days to 72 days, releasing ~$2 million in working capital and negotiating with OEMs to secure an incremental ~$2.3 million in marketing incentives and distributor discounts.
| Client Name | ROI | Industry | Ownership | Management | No. of Employees | Size | Project Duration |
| An IT Firm | 20x | IT Products (SaaS) | Private | Professional | ~250 | $46 million | 48 months |
About The Company
Project Secura is led by two tech entrepreneurs and is active in the enterprise IT infrastructure, virtualization, enterprise security, storage and recovery, SI services, and groupware services. Project Secura is ~20 years old. The company serves about 200 blue-chip private and government customers. Also, have a presence in 6 cities, has 5 SBUs, and works in a highly competitive and price-sensitive (and therefore low margin) business environment.
Practus’ Challenge
- Convened and ran weekly sales performance and collection reviews with key salespersons (~78 weeks and running).
- Designed and implemented SOPs to reduce gaps between committed service standards and actual milestones achieved, to help speed up customer sign-offs, invoicing, and collections.
- Enhanced MIS reporting standards from entity level to SBU level within 4 months of the engagement, at a negligible IT investment.
- Reduced time is taken to finalize audit from 25 weeks to 7 weeks.
- Implemented SBU level and department level budgeting within 5 months of engagement.
- Setting and improving the financial health of the company.
- Financial processes:
- The month-end process to be implemented.
- Budgets and monthly forecast to be drawn.
- Working capital management:
- Improving the working capital cycle of the company.
- Improving DPO of the company.
- Cashflow management:
- Weekly monitoring of DSO and collections as per budgets.
- 13-week rolling forecast.
Impact Delivered
- Reduced DSO from 93 days to 72 days which released ~$2 million in cash flow.
- Reduced TAT in monthly MIS reporting from 14 days to 6 days.
- Refinanced debt funding to reduce the cost of finance by ~65 bps and helped raise an additional $3 million in debt.
- Assisted in negotiations with OEMs to secure an incremental ~$2.3 million in marketing incentives and distributor discounts.
- Achieved improvement in sales productivity from average ~6.7X (sales divided by salesperson remuneration) to ~8.1X.
