Cash and liquidityCash and working capital management |
The difficult economic environment has made cash flow one of the principal concerns for retail CFO’s. Focus towards costs reduction, prudent cash management and revenue leakage prevention is becoming of primary concern, as access to debt and equity markets becomes increasingly difficult, irrespective of the financial health of a company.
All players in the supply chain are looking carefully at how they manage their working capital, with many buyers, both retailers and consumer products companies, looking to extend payment terms with their suppliers to help manage their cash flow. Cases have recently been reported of payment terms being extended to 60, 90 or even 120 days.
However, there is a growing recognition that this approach, focused as it is on the needs of the individual company, is resulting in a domino-effect as suppliers respond by adopting similar measures with their own supplier base. The result is that a huge amount of value is being locked up across the supply chain, to the detriment of all the players within it.
Releasing working capital within the supply chain (93 KB)
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Data insight
Every organisation depends on reliable data. Managed well, it will drive revenues, reduce costs and mitigate risk. Managed poorly, it can cause loss of customers, inflating costs and significantly increased revenue leakage risks.
Data insights exploit company’s data by using it in intelligent ways to extract highly valuable findings that can enhance a business’ bottom line e.g. identifying billings that are not being calculated correctly. Our data insight model sets out the areas we can help you with, in particular around:
- Revenue increasing initiatives (e.g. customer and product profitability analysis, revenue leakage identification and remediation, billing accuracy review)
- Cost reducing reviews (e.g. procurement process transformation, expenses and corporate cards usage review, tax optimisation)
- Releasing working capital (e.g. inventory management, receivable and payables optimisation, staff productivity review, tax cash flows analysis)
Releasing working capital within the supply chain
(93.01 KB)
