Episode 3 of our Working Capital Series 💰 features Carl and Dario discussing ‘Specific Measures to Optimize Working Capital.’
This episode dives into actionable strategies for improving inventory management, payment terms and cash management.
Key Highlights:
1. Inventory Management: Carl and Dario explain how effective inventory management begins with creating a robust data model to identify critical SKUs and excess stock. They discuss using advanced analytics to determine optimal re-order points and safety stock levels, ensuring efficient management to avoid stock-outs and overstocks. 📊
2. Supply Chain Optimization: The discussion includes leveraging industry-proven supply chain management tools and targeted measures, like broker sales, to maintain cost-effective inventory levels. Tailored solutions, ranging from short-term measures to long-term strategies, can help keep stock levels optimal and improve overall financial health. 🔄
3. Optimizing Payment Terms: Carl and Dario highlight the importance of harmonizing payment terms through supplier performance reviews and selective tendering with new suppliers. They advocate for a holistic negotiation approach, encompassing item-price negotiations and payment terms, to achieve competitive and sustainable agreements. 💼
4. Cash Management Strategies: The episode also covers a four-way approach to cash management, focusing on stopping unwanted cash outflows. This includes creating a clear credit-supply plan, having a budget gatekeeper, ensuring expert communication and utilizing real-time reporting and control mechanisms for effective cash management. 💰
Join us to discover practical measures that can significantly enhance your working capital management and drive better financial outcomes.
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