Finance Simplification Makeover: Helping a Retail and Distribution Group Find their Groove

Ever get that feeling that your finance team is juggling a bit too much? Processes are a bit messy, systems have seen better days, and trying to get a clear picture across the company feels like herding cats? Yep, we've been there.

A private equity-backed retail and distribution group were facing a similar conundrum. They'd grown by acquisition, which meant a bunch of different businesses, each with their own way of doing things. It was a bit of a "patchwork quilt" situation - and not the stylish kind.

The Starting Point:

Imagine a collection of businesses with that classic “small business vibe" - lots of heart, but maybe not as much structure as they needed. Outdated systems, limited group-level reporting... It wasn't ideal. The goal? To help them streamline and optimise their finance function, so they could really hit their stride.

Laying the Groundwork:

The start of this story was quite funny—one of the career favourites, actually. A referral had led to a meeting with a private equity group CFO who had been the boss of a longstanding customer relationship 15 years earlier. There was a reputation behind his execution—it was almost renowned. The meeting took place in South Yarra, and unknowingly, there was actually a vacancy within his team for a Group Financial Controller to set up their financial control function. In true PE CFO fashion, he remarked, “There is a candidate who will be offered the job at 5:00 p.m. today, but if a stronger option can be presented, time can be made in the diary to meet them this afternoon.” Shortly after that meeting, the ideal candidate became immediately clear.

Another private equity CFO, who had grown up watching a well-known South Australian footballer and happened to recognise the surname, had referred an immediately available Group Financial Controller with the ideal background—CA qualified, experience in London, and a track record of working with multiple PE and listed companies undergoing significant change, including IPOs, buy-side, and sell-side transactions. After some convincing, he arrived at the South Yarra office that afternoon, and, long story short, accepted the role. This marked the beginning of his journey, and to this day, he remains—by all accounts—one of the most exceptional PE Financial Controllers. Later, he would go on to secure his first PE CFO position, but that is a story for another time.

With the team in place, they got cracking on implementing robust systems and processes at the group level. Think group consolidation, treasury management, cash flow forecasting, FP&A, and even some insightful analytics.

Zooming in on the Subsidiaries:

Once the group level had established a strong operational rhythm, attention shifted to the individual subsidiaries, starting with a pilot program at one of the smaller brands. Their ERP system—Dynamics AX 2009, which was definitely showing its age—was causing significant challenges. The first meeting with the client took place in a tiny, windowless room in the northern suburbs of Melbourne, barely big enough for two seats and a small table.

The discussion quickly turned to whether the issue was truly the system or if underlying processes were to blame. Was a costly ERP upgrade really the only solution, or could the same results be achieved through process improvements? A similar challenge had been tackled in a PE subsidiary before, where ERP investment wasn’t a priority, and process automation had been the key. The CFO, highly strategic and experienced, could have easily dismissed the questioning. But instead, something about the conversation stuck. The next morning, the unexpected happened—a call from the CFO: “I think we’re right; we can do this without heavy investment in AX. So what’s the next step?” Even now, that story still gives goosebumps. 

They ran some workshops, and set up a small project team. Because not every project needs a latin name, they called our project "Simplification". The aim was to assess, standardise, and simplify their accounting, finance and purchasing processes - covering everything from order to cash (O2C) and procure to pay (P2P). They brought in an A-team of interim and permanent subject matter experts – a project lead, business analyst, accounts payable and receivable specialists, a commercial finance guru, and a tech-savvy IT manager to bring their systems into the 21st century.

The Payoff:

The results were impressive, to say the least:

• Cost savings in the millions: Always a good news story for a small or medium enterprise.

• Streamlined O2C and P2P processes: Efficient and effective.

• Supercharged cash collection: Getting paid faster – who doesn't love that?

• Accurate cash flow forecasts and budgets: No more flying blind.

• Internal controls for days: PCI, DOAs, and the whole nine yards.

Plus, they revamped their organisational structure (without any over-complicated restructures) to make sure the right people were in the right roles. The result? A happier, more productive finance team.

The Sequel:

After the success of the pilot, they replicated the magic across two other subsidiaries. The transformation was clear – the group was humming along beautifully, and eventually, they were acquired by another private equity firm.

Lessons Learned:

• Don't let your finance function get bogged down in complexity. Simplify, standardise, and optimise for a smoother ride.

• People power is key. A strong finance team with the right skills is your secret weapon.

• Don't be afraid to ask for help. Sometimes an outside perspective and specialist expertise can make all the difference.

  
  

Keen to give your own finance function a makeover? Get in touch – we're here to help!