Stout supported a global automotive parts supplier with consolidating its thirteen-week cash flow forecasting across a large group of North American production and distribution plants. Following a period of rapid growth and multiple acquisitions, the Company inherited disparate forecasting processes spanning multiple ERP systems, shared services teams, and data sources. Additionally, several plants relied on inputs from operational personnel with limited experience in cash forecasting. We were engaged to support a lean financial planning and analysis (FP&A) team standardizing and enhancing the forecasting process across all plants.

We began by conducting standalone workshops with each plant included in the consolidated thirteen-week cash flow process. Recognizing that each plant had unique considerations, we collaborated with local teams to identify strengths, recurring pain points, data gaps, and potential enhancements. We placed particular focus on identifying common data sources and processes, capturing quick wins to drive alignment, and documenting areas requiring tailored, plant-specific approaches.

Following this assessment, we developed a comprehensive set of recommendations spanning the Company’s cash forecasting processes. We worked closely with the Company to strengthen organizational alignment by clearly defining roles and responsibilities across Treasury, FP&A, plant Controllers, and Shared Services. This effort improved accountability, reduced duplication of efforts, and enhanced overall operational efficiency.

In parallel, we standardized data definitions and standards across locations, addressing inconsistencies in accruals, rebates, freight, factoring, and intercompany transactions to improve data integrity and reporting comparability. The Company also refined the allocation of forecasting responsibilities, distinguishing between activities managed centrally (e.g., shared services inputs) and those retained at the plant level (e.g., inventory and purchasing).

Building on this foundation, we partnered with the business to implement forecasting methodology refinements, selecting two material plants as pilot programs. To enhance visibility into performance, we introduced structured variance analysis, including defined thresholds and variance bridges, with a focus on key net working capital drivers within accounts payable and inventory purchasing. We also collaborated with plant controllers and operations teams to replace manual forecasting inputs with driver-based assumptions tied to the Company’s annual operating plan and underlying sales, purchasing, and inventory demand forecasts. After successfully standardizing forecasting methodologies across within the pilot entities, we supported the transition of these processes to the Company’s internal FP&A team for broader deployment.

Through this engagement, we enabled the Company to establish a consistent, transparent, and reliable cash forecasting framework across its organization. These improvements enhanced decision making, strengthened cross-functional alignment, and positioned the Company to scale its forecasting processes alongside continued growth.