Situation
AM-N experienced material Order-to-Cash breakdowns that put cash flow, audit outcomes, and bank funding at risk. More than $6M in aged receivables sat unresolved due to missing processes, weak controls, and non-compliant approvals, while customer complaints, invoicing errors, and pricing execution gaps drove late payments and margin leakage. A failed internal audit in July 2024 escalated risk further by placing SIG’s $250M A/R securitization facility, and approximately $25M in annual benefit, at risk, exposing the need for immediate stabilization and control.
Action
Keenan Reid supported a focused Order-to-Cash remediation to recover cash, close audit gaps, and stabilize finance operations.
As part of this work, we:
- Led targeted collections for the five largest delinquent customers that held the largest concentration of aged A/R.
- Assessed over 1,000 aged invoices and credits via netting, refunds, and corrections.
- Implemented formal credit limits, order hold/release, and weekly aging reviews
- Closed high- and medium-risk OTC audit findings and prepared for the securitization bank audit
- Implemented automated dunning and customer statements
- Rolled out a Power BI A/R dashboard to restore visibility and accountability
- Rebuilt A/R and credit capacity through senior hires to sustain operations
Results
The Order-to-Cash remediation reduced aged receivables, closed audit findings, and stabilized finance operations.
- $6M+ in aged A/R recovered, including $2.7M from Kroger and $3.9M from BiBSP
- 1,000+ aged invoices and credits resolved, a 68% reduction year over year
- $2.2M in aged credits returned, reducing aged credit count by 65%
- DSO reduced by $12M vs. prior year, driving a 52% overall reduction in aged A/R
- Internal and bank audit findings closed, preserving SIG’s $250M A/R securitization facility and approximately $25M in annual benefit
