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FINANCIAL-ANALYSIS5 MIN READ

Savings That Do Not Hit Cash

Test a savings claim for baseline integrity, cash timing, and working-capital side effects.

Tessa T Procurement lead 1 Baseline 2 Timing 3 Cash The moment 20 sec Savings claim Tessa reports $1.2M of annualized savings. The new supplier requires faster payment and larger minimum orders. The P&L can improve while cash gets worse in the first quarter. $1.2M annualized savings 20 days faster supplier payment

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