The uncertainties of today’s markets are requiring businesses to focus on optimising cash flow as a key requirement to survive.
Traditional methods are simplistic, they result in 10-30% more inventory than is needed and have lower service levels. By contrast, managing working capital holistically across the supply chain commonly drives 20-30% reductions in inventory with improvements in service level.
Our approach to the conversion cycle allows the reduction of working capital and the release of cash. Managing the end-to-end processes across the entire value chain creates sustainable improvements.
Most of our multinational clients ask us, as the first step towards launching a working capital project, to undertake a diagnostic covering a representative part for the business, consisting of the following steps.
- Meeting with senior staff to agree objectives, scope and deliverables
- Individual report for each facility with findings, targets and recommendations agreed with local management.
- Group report to with projected benefits and targets and an outline proposal for the way forward
We normally complete the review within a month, by the end of which the client has gained not only a very good understanding of the potential improvements, but also knows what has to be done to achieve them.