SSKFExecutive Cockpit

Quote-to-Cash 360

One spine from order to cash — the value, the conversion, the days, and the leakage at every handoff. Where a specced order turns into a ground, shipped, invoiced and collected bearing (and where it gets stuck).

AB SKF (SKF Group) · FY2025 (Jan–Dec 2025, audited anchor)
World's largest bearing maker today — clear #1 in industrial bearings
37,271 employees · 90+ sites · 130 countries
Executive read· the answer, then the moves

SEK 4.1 bn is leaking or stuck across the 103-day quote-to-cash cycle — the largest single pool is SEK 2.4 bn at Collect. Close the billing lag and aged book to pull cash forward without selling a thing.

5 of 6 headline metrics improving vs prior · still off target: DSO (Days Sales Outstanding) 65d vs 60d, Cash Conversion Cycle 111d vs 100d, Overdue AR (>60d) SEK 2.4 bn vs SEK 1.8 bn

Do now — ranked by urgency
  1. 1
    Blocker: Production Transfers / Footprint — Vertevo Carve-outAct now
    Why it matters

    Gates the program go-live (restated ledger, production-line transfers & the Q4 2026 Vertevo listing window).

    What's driving it
    • due 2026-10-30 · Mitigating
    • Signal: Program blocker
    FYI
    • Automotive's dependence on Industrial contract manufacturing must be cut before listing — the extra production-line transfers moved the window H1 → Q4 2026 (cost stays inside the envelope).
    • Owner: Separation PMO · Operations
  2. 2
    SEK 380 M of contracts at risk — Q4 2026Act now
    Why it matters

    Each lost contract is recurring aftermarket & services revenue — the cycle-dampening spine — that won't repeat.

    What's driving it
    • renewal window Q4 2026
    • Signal: Renewal risk
    FYI
    • Of SEK 2900 M of aftermarket & OEM contracts up for renewal in Q4 2026, SEK 380 M is at risk of non-repeat.
    • Owner: Joakim Landholm (Commercial & Operations)
  3. 3
    Recover the SEK 2.4 bn stuck at CollectWatch
    Why it matters

    Aged AR >60d — shipped & billed, not collected — pure working capital sitting in the cycle, not a sales problem.

    What's driving it
    • SEK 2.4 bn leak at Collect (largest of 4 leak points)
    • SEK 4.1 bn total tied up across the 103-day cycle
    FYI
    • Only 96% of booked value is collected; rest in inventory / AR
    • Owner: Treasury · Collections
  4. 4
    IAC guidance BSEK −2.5 to −3.0 for 2026Watch
    Why it matters

    Keep separation spend inside the announced envelope; track footprint payback quarter by quarter.

    What's driving it
    • Items affecting comparability
    • Signal: Alert
    FYI

    Separation plus Americas footprint consolidation front-load costs (Q2 2026 IAC −1,004, roughly half separation / half footprint).

🌍 Regionalization & footprintStep 6 of 6 · watch it convert order → cashProject / Job 360Journey complete ✓All journeys
🌐 Enterprise 360 modules· on Order-to-Cash 360Browse all 31 views ▾
● LiveBuilt forCFO· cash conversion & working-capital tied upCOO · Operations· manufacture → bill lag (unbilled shipments / self-billing)CMO · Sales· quote → order conversion & discount leakage

The order-to-cash cycle for the group, end to end. An order/spec becomes a booked factory order, the booked order becomes ground & assembled goods, production becomes shipped & distributed goods, a shipment becomes an invoice, and an invoice becomes cash — 103 days from order to cash, with SEK 4.1 bn leaking or stuck across the handoffs. Each stage links to the 360 that owns it and the records to work. (High-frequency distributor & aftermarket orders bill on a steadier cadence — this is the make-to-order OEM lane.)

Data backing: o2c_stage (cycle stages) · quote_system · pipeline · project · ar_invoice / ar_aging — composed from the underlying 360s
103d
Quote-to-cash time
quote → collected
SEK 4.1 bn
Tied up in the cycle
leaking or stuck
96%
Collected of booked
rest in inventory / AR
99%
Quote → order
win-to-book
1.01
Book-to-bill
order book growing
The spine

Order → Manufacture → Ship → Bill → Collect

Value flowing through each stage, the conversion from the prior stage, days in-stage, and the leakage at the handoff.

Quote15d
SEK 92.5 bn
Order / Spec
SEK 900 M leak
Order0d
SEK 91.6 bn
Manufacture & Grind
Deliver18d
SEK 90.6 bn
Ship / Distribute
SEK 500 M leak
Bill5d
SEK 90.1 bn
Bill / Invoice
SEK 300 M leak
Collect65d
SEK 87.7 bn
Collect / Cash
SEK 2.4 bn leak
Where the time goes

103-day quote-to-cash

The biggest levers are manufacture/ship (grinding & production lead time) and collection (DSO) — the order handoff is instant; billing lag is the quiet one.

Quote 15d
Deliver 18d
5d
Collect 65d
Quote · 15dOrder · 0dDeliver · 18dBill · 5dCollect · 65d
Where cash leaks or gets stuck

SEK 4.1 bn across the cycle

Each leak quantified, owned, and linked to the 360 and the records that fix it — the working-capital recovery list.

📐 QuoteSEK 900 M

Off-platform OEM RFQs & spec churn vs governed SAP quoting

Owner: Commercial · LandholmWork it →
🚚 DeliverSEK 500 M

Footprint-transfer lead times & logistics during Americas consolidation

Owner: Operations & LogisticsWork it →
📄 BillSEK 300 M

Unbilled shipments + OEM self-billing timing

Owner: Finance · Shared ServicesWork it →▤ records
💵 CollectSEK 2.4 bn

Aged AR >60d — shipped & billed, not collected

Owner: Treasury · CollectionsWork it →▤ records

Read this: the two biggest pools are SEK 2.4 bn aged AR (collect) and SEK 300 M unbilled dispatch / export-doc lag (bill) — both pure working capital. Closing the billing lag and the aged book pulls ~SEK 2.7 bn of cash forward without selling a thing.

Every stage, one row

Stage detail

Value, conversion, days, leakage and owner — drill to the owning 360.

StageValueConv. from priorDays in-stageLeakageOwnerDrill
📐 Order / SpecSEK 92.5 bn15dSEK 900 MCommercial · Landholm
🏭 Manufacture & GrindSEK 91.6 bn99%0dOperations · Factories
🚚 Ship / DistributeSEK 90.6 bn99%18dSEK 500 MOperations & Logistics
📄 Bill / InvoiceSEK 90.1 bn99%5dSEK 300 MFinance · Shared Services
💵 Collect / CashSEK 87.7 bn97%65dSEK 2.4 bnTreasury · Collections