Working Capital Reduction – Global Supply Chain Group

"Everything should be made as simple as possible…but not simpler. "

Albert Einstein (1879 – 1955)

Working capital is a portion of a business’s investment for day to day supply chain operations. Basically, it is the money involved in doing business. It comprises company’s inventory, account receivables and cash on hand.

Working capital is usually funded by shareholder equity or through debt borrowing. It is a common measure of a company’s liquidity, efficiency, and overall condition. If this is not managed appropriately, it can signify substantial costs to a business by tying up much needed cash or by incurring financial costs. This excessive investment denotes a nonstop drain on a company’s cash flow, and can substantially limit top or bottom-line supply chain performance.

Working Capital Reduction
What is it?
  • Inventory reduction: main focus of supply chain
  • Short-term means of financing: discover the optimal amount of cash needed to meet daily business expenses
  • Accelerate cash invested in the business
Pain points
  • Far too much inventory in the supply chain
  • Don’t have the right inventory at the right place at the right time to serve customer demand
Why use it?
  • Reduce inventory

This enables continuous production and at the same time minimises raw material and reordering costs.

  • Reduce cash holding costs

We help you establish an appropriate credit policy for your company with terms that attract customers new customers and keep existing ones.

  • Know which inventory optimisation software is suitable for which situation

Our extensive network and know-how allows us to confidently point you to the right direction which serves your needs rather than race towards the most expensive system.

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