Harjanti Oy is a traditional construction company that provides services for both professional and private needs. Its range of services includes infrastructure works, repair and new construction, as well as transport services. Harjanti’s specialty lies in construction and transport work carried out at sea, operated with the transport vessel M/S Hessu.
Harjanti has been involved in a wide variety of projects, such as foundations for buildings, tunnels (for example, for the West Metro), bridge construction sites, parking garages, wind farms, and breakwaters.
Forecasting Cash Flow for Certainty at the Threshold of Large Projects
Aamu’s collaboration with Harjanti began in April 2021. Harjanti was about to start a wind farm project worth millions, for which substantial equipment investments and a large number of subcontracted workers for the construction sites were needed.
The company sought a clearer understanding of what to prepare for when project amounts rise. Management already knew how to acquire work and build roads, but they sought deeper knowledge and further training in financial management.
“I like that things are discussed straightforwardly, whether it’s good or bad.”
Harjanti’s CEO, Matti Venetvaara, had an idea of which projects were profitable for the company, but there was no numerical data to prove it. Payments for sold projects were known in advance, but the company wanted to improve visibility into the more detailed cash flow situation.
The only problem for the business was the cash flow itself. Considering future investments, better financial certainty and predictability would be useful for large and long-term projects. The Clarity service was used to model data and implement its real-time monitoring.
In the Clarity service partnership with Harjanti, it was decided to hold monthly meetings to discuss business pain points, analyze cash flow, and evaluate the necessity of various expenses.
Data Revealed the Diamonds in Business Areas
While the collaboration for refining forecasts and profitability continues, the Clarity service partnership has already yielded significant results.
Based on the data, it’s now possible to identify which projects are profitable and which are not. The company’s management can communicate these findings to the supervisors and understand why some projects yield better results than others. This enables them to steer operations in a more profitable direction.
The analysis revealed, for instance, that the maritime transport business is highly profitable for Harjanti, yet it constitutes a small portion of the total revenue. The company aims to increase revenue from this specialized service through advertising, sales, and driver recruitment.
The management now has the information they were looking for, which helps them better direct different construction sites. This clarified information also matters for guiding sales and marketing. Based on Clarity’s data, a bonus payment model for site managers is also being developed. It is expected that the fruits of the Clarity work will be reflected in next year’s profitability.
This is exactly what I was looking for. Expectations are high for the future.Matti Venetvaara, CEO, Harjanti Oy