Building Competitive Cash Advantage with Agicap: Ocean Bottle
Nick Doman, Co-CEO and Co-Founder of Ocean Bottle, and Lisa Hayes, Finance Director, recall how they used to manage finances with slow and inaccurate manual spreadsheets. And they explain the transformative power of Agicap once it was introduced to manage their cash flows.
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Key takeaways
Ocean Bottle is a UK-based company on a mission to stop plastic from flowing into our oceans. The company is dedicated to making a global impact by collecting plastic waste in regions like Indonesia, the Philippines, India, Kenya, Egypt, Ghana, and Brazil. With significant stock requirements spread across China, Europe, the UK, and the US, managing cash flow is critical for their operations.
Finance Director Lisa Hayes, responsible for cash flow forecasting and working capital management at Ocean Bottle, recalls the challenges they faced before adopting Agicap. Previously reliant on manual spreadsheets, the process was slow and often inaccurate, making it difficult to get a clear financial picture.
However, with Agicap's bespoke cash management tool, integrated with systems like Xero and their banking platform, Lisa now has full confidence in the accuracy and timeliness of their financial data.
" We’ve got stock in China, Europe, UK and US. Which means that we have many SKUs. So all that stock really means that we have to be very tight on our cash to make sure that we can afford our operating expenses here in the UK. To have a really close grasp of where our cash is at any one moment and how we can best utilise it, is incredibly important to us. "
Ocean Bottle
Customer’s history
Co-CEO Nick Doman and his Co-Founder William Pearson met at London Business School and were inspired to create Ocean Bottle to address the plastic pollution crisis. The company was founded in 2019 with the mission to prevent plastic pollution in oceans by collecting waste in countries like Indonesia, the Philippines, and Brazil, while ensuring fair wages for local workers involved in the collection process.
Ocean Bottle operates on a model where each reusable product sold funds the collection of 1,000 plastic bottles, demonstrating a commitment to both profit and purpose. The company tracks and traces all plastic collected, providing transparency about the impact of their operations. Ocean Bottle currently faces challenges in securing investments, as the market is currently thin and valuations are low, necessitating tight cash optimization.
Customer’s needs
Streamlining processes, allowing for multi-currency forecasting and real-time updates, which are essential for the company's international operations.
Shifting away from manual spreadsheets to automated systems for a more efficient and responsive financial management process, ultimately supporting Ocean Bottle's growth and operational needs.
Making better business decisions on the basis of a reliable cash flow forecast.
Solution
Nick Doman notes that Agicap has significantly improved their ability to oversee cash positions, allowing for more informed investment decisions in high ROI opportunities. This advantage is critical in a cash-strapped environment, enabling Ocean Bottle to utilise its cash position effectively.
The finance team at Ocean Bottle is able to assess the impact of potential revenue drops on cash flow with Agicap. This has also improved transparency between the finance team and the CEO, facilitating better decision-making, particularly regarding working capital requirements and supplier payments. This insight allows the company to determine when to invest, stockpile cash, or make critical operational decisions, such as hiring or ordering stock.
Previously, cash flow forecasting was conducted monthly, but now it can be done in real-time, allowing for quick snapshots of the company's cash position through dashboard functionality. This efficiency enables management to see cash flow movements and main expenditures easily.
With Agicap, Lisa Hayes can conduct detailed scenario planning, such as forecasting the impact of revenue drops of 10% or 25% on cash flow, which is crucial for strategic decision-making. The system supports three key currencies for Ocean Bottle: GBP, US dollars, and euros, providing visibility on cash inflows and outflows, and allowing for informed decisions on deposits and hedging.
Previously, cash flow forecasting was slow and often outdated by the time it was presented to the board. With AGICAP, the finance team can access real-time data from integrated systems like Xero and their banking system, enhancing accuracy and efficiency. This has saved Lisa Hayes and her team considerable time, allowing them to focus on strategic analysis rather than data entry. The real-time information provided by AGICAP has increased confidence in the data, facilitating quicker and more informed decision-making.
" Now I have full confidence in that everything’s coming from integrated systems such as Xero and our banking system. What Agicap offers over an FP&A solution is a bespoke cash management tool, which means I can go into granular detail on my cash flow and also scenario plan into the future. "
Nick Doman also likes some of the innovative features of Agicap, which includes individual dashboards for each bottle and order. This allows for tracking and linking products through NFC technology, enhancing transparency in their operations.
The ability to conduct scenario planning has enhanced risk mitigation, allowing Nick Doman to balance potential upsides with risks effectively. He notes that Agicap's capabilities give Ocean Bottle a competitive edge by maximising cash utilisation, which is critical in a cash-strapped environment.
Conclusion
Agicap’s ability to provide a live, up-to-date picture of cash flow makes it indispensable for CEOs like Ocean Bottle’s Nick Doman. For him, this view is critical for making informed decisions that drive growth.
Agicap is an essential tool for any decision-maker who values cash management and wants to enhance their company's financial strategy.
Overall, Agicap has become integral to Ocean Bottle's operations, supporting their mission to combat ocean plastic pollution while ensuring financial sustainability.
Know more about us
Hornberger Consulting
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Business services
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Hamburg, Germany
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Anticipate cash flow shortages beforehand, craft scenarios that are based on actual financial data, extend ERP-systems with cash flow management capabilities
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Business Sector:
Software Development
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High manual effort in consolidating the cash flow data of 8 companies and 15 bank accounts, high susceptibility to errors, outdated data and hardly any chance to provide management with reliable reports for strategic decisions.
