Logistics company: cash back under control, and a structure built to grow
- INDUSTRY
- Logistics and freight services
- LOCATION
- Dammam, Saudi Arabia
- ENGAGEMENT
- 5 months
- FOCUS
- Finance control, organisation structure, credit and collections
The challenge
The company had grown steadily on the strength of its client relationships. Revenue was rising, but cash was not keeping up. Services went out on credit with no clear limits, invoices were raised late, and collections depended on a few people chasing customers by phone.
At any given moment, nobody could say how much was owed, by whom, and for how long. Every new client widened the gap between the work done and the cash in the bank. Receivables had reached SAR 3.8 million, about 38% of it more than 90 days old. The cash gap was costing roughly SAR 45,000 a month in overdraft charges and late supplier payments.
What we found
We sat with operations, accounts and sales, followed how a completed job becomes an invoice and how an invoice becomes cash, and put a money value on every point where that chain broke.
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01
Credit was given on relationship, not on rules.No limits, no approvals, no stop on accounts already overdue. About SAR 1.45 million sat in receivables older than 90 days.
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02
Everyone thought someone else was following up.Operations, accounts and sales all touched the customer, but no one owned the collection. More than 120 invoices a month had no named person chasing them, and the average collection period was 78 days.
-
03
The numbers arrived too late to act on.Monthly results were ready 10 to 12 weeks after month-end. Two loss-making contracts ran for about 6 months before anyone noticed, at a cost of around SAR 260,000.
What we built
Across the layers of the Organise to Grow model.
The results
Cash flow is now predictable. Every week the leadership team sees what is owed, what is at risk and who is acting on it, and the company takes on new clients knowing the cash will follow the work. The average collection period fell from 78 to 46 days, and receivables older than 90 days dropped from 38% to 12%. Bad-debt write-offs are down about 70%, and monthly results now arrive within 10 days of month-end.
