Deloitte launches LiquidityIQ™ in Southeast Asia to help companies optimise their working capital    

Deloitte launched its proprietary tool, LiquidityIQ^TM  on 11 May, in Southeast Asia that will be used to help Deloitte clients identify and implement improvements to their companies’ processes and optimise their working capital.

With companies facing uncertainties amidst an environment punctuated by slowing economies, inflation, and rapidly increasing interest rates, LiquidityIQ^TM will enable Deloitte to better advise clients in Southeast Asia on how to improve their effective working capital levels. This would ensure that companies invest in the necessary aspects to meet their short-term obligations without tying up resources that will help to improve their businesses in the long run. 

Deloitte’s time-tested methodology includes four components that enable organisations to enhance their processes, policies, procedures, and technology to optimise the performance of their working capital: make it visible, make it urgent, make it happen, make it stick.

Deloitte’s approach starts with a rapid assessment of a company’s current working capital process using transaction level data through its analytics tool, LiquidityIQ^TM,  along with a process maturity review. With this information, Deloitte can then provide a roadmap with targeted areas for improvement prioritised in terms of impact and complexity or timing of implementation to assist in defining the next steps to execution.

Matt Becker, Deloitte Southeast Asia Turnaround Leader said, “There are always opportunities for working capital optimisation, no matter how well-run an organisation is – whether the company requires capital to invest in new markets, is preparing for mergers or acquisitions, or wants to build resilience in uncertain times. Freed-up capital can be used to lower debt and invest in other aspects of the businesses to fuel growth. Companies can build their capabilities and implement structural changes to maximise their value capture. This flexibility can lead to greater returns and sustained performance in the future.”

By leveraging LiquidityIQ^TM Deloitte can help organisations identify and unlock significant value by defining their strategies for each working capital cycle. 

“With the right people, processes, and systems, companies can create a culture that improves working capital performance and frees up capital. With the right working capital management strategy, companies can implement quick wins that generate significant benefits immediately to generate rapid value, build core capabilities to deliver incremental benefits and sustainable results from the mid to long-term, and fundamentally change the business model to deliver long-term structural change,” said Nathan Guo, Deloitte Value Creation Service Partner. 

Derek Lai, Deloitte China Vice Chair, Global CP&I (Insolvency) Leader Derek Lai

Anthony J. Jackson, US Cash & Working Capital Services Leader
Deloitte Transactions and Business Analytics LLP