GlaxoSmithKline believed it could improve its working capital management capabilities and, in the process, release cash for strategic investments across the business. With Accenture’s help, the company launched a comprehensive program that focused on improving working capital in trade payables, trade receivables and inventory in all businesses and all geographies.
Within 18 months, GlaxoSmithKline realized roughly £1.5 billion ($2.28 billion) in working capital benefits and was also able to build the internal capabilities necessary to drive working capital improvements at scale and on an ongoing basis.
As part of a program of change, GlaxoSmithKline wanted to make improvements in its £7 billion (approximately $10.6 billion) trading working capital to release cash for investment elsewhere within the business. GlaxoSmithKline’s objective for the Working Capital Program set by the CEO was to deliver more than £1 billion (approximately $1.51 billion) in working capital improvements in 2009. For help in realizing this ambitious goal, the company turned to Accenture for its deep skills and proven experience in delivering working capital improvements.