Enforcing 45-Day DSO and Inventory Lean Reductions on Plant Controllers
Uncollected receivables and excess raw inventory trap millions in unneeded debt. Here is how PE Operating Partners enforce strict Days Sales Outstanding (DSO) collection targets.
Amit KasliwalCEO & Founder, Dehurdle
December 31, 20224 min read
The DSO Reduction Alignment Script
Recommended Spoken Script
"Our current Days Sales Outstanding is 74 days against an industry benchmark of 48 days, trapping $6.2M of unnecessary cash on our balance sheet. We are instituting weekly aged-receivables collection reviews and enforcing automated customer credit holds at 15 days past due to unlock that liquidity immediately."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice working capital alignment meetings in Dehurdle.