Generating Cash

Generating Cash

As the world climbs out of recession, or your selling efforts result in increasing turnover, the need for cash becomes more acute.

Management of working capital is an essential ingredient to any successful business. A key objective is to optimise investment in this area. Excess investment in Debtors or Inventory means that your cash isn't working for you. Poor collaboration with suppliers means that you won't be maximising cash availability.

The good news is that any improvement you make from now will result in either reducing the debt burden for your company or freeing up cash to invest in more profitable areas. Techniques to manage product life cycle help to minimise inventory obsolescence. Typically, any business distributing product, or manufacturing, has at least 15% of its inventory value that either isn't moving at all or is moving very slowly.

Is your inventory well balanced? Typically most businesses have excesses in some items to foreseeable requirements and are living hand to mouth in others. Both scenarios cost money whether it is excess cash tied up or cost associated with inefficient procurement.

Does your product development process take account of inventory management? Are your invoicing processes what they should be?

We have years of experience in designing processes and implementing best practices to improve working capital management in all aspects. Our work, besides systems design, includes training your staff so that your business is robust to confidently move forward independently. We cover a broad spectrum of activities, from accurate product/channel/customer profitability to supply chain optimisation. We can provide critical challenge to all areas of expenditure through such techniques as zero based budgeting and Rough-cut ABC. We can conduct in-depth analysis of sales and production trends over time to determine the cash implications based on your projections for the future.

Inventory

An understanding of the profile of an organisation's inventory is of paramount importance. Our experience shows that many organisations have good NPI (new product introduction) processes but have paid scant regard to Product Discontinuation processes.

We review the end-to-end supply chain and replenishment routines to assess optimum levels of inventory in the "As Is" state and compare this to an analysis of inventory demand. We then go on to assess what could be done to reduce overall inventory value through more efficient profiling and supplier development.

Supply Chain

As the world climbs out of recession, or your selling efforts result in increasing turnover, the need for cash becomes more acute.

Our work in this area covers a broad spectrum of activities, from accurate product/channel/customer profitability to supply chain optimisation. We can provide critical challenge to all areas of expenditure through such techniques as zero based budgeting and Rough-cut ABC. We can conduct in-depth analysis of sales and production trends over time to determine the cash implications based on your projections for the future.

Within this area we also find that improved new product introduction with shortened lead-times and faster cash generation can play a key role.

Cashflow Management

Managing cash has been said to be the only real control needed by an organisation as that is the only reason for filing for bankruptcy! Whilst we don't subscribe to such a black and white view of the world we do believe that this is of utmost importance to any organisation.

Web design Cardiff | Rhys Welsh Freelance Web Designer in Cardiff