Sudden activity contraction & LIQUIDITY pressure.

Situation

Industrial company operating in the FMCG sector.

Rapid activity contraction following an exogenous shock.

No reliable visibility on short-term cash requirements.

Significant deterioration in trade receivables quality.

No cross-functional management of working capital.

Short-term financing capacity weakened.

Decisions & mechanisms implemented

Centralized liquidity management.

Structural decisions on liquidity allocation across European operations.

Deployment of structured mechanisms to accelerate collections.

Liquidity discipline embedded into governance processes.

Outcomes

Working capital halved within six months.

Past-due ratio reduced from 30% to 2% within two months.

 Average collection period reduced by 6 days.

Stabilized liquidity and sustainably strengthened governance.