Ongoing, active management of working capital helps to stabilise and increase cash flow and quickly repay additional covid loans taken out. Capital tied up in current operations can be reduced both by reducing inventories and stock levels and by increasing current liabilities and customer prepayments.
The primary goal of such an improvement is to reduce the period of capital commitment and thus to sustainably ensure sufficient liquidity at all times. Further advantages of working capital management are falling capital and storage costs, strong internal ﬁnancing and an optimised balance sheet structure.
In close cooperation, we develop operational and strategic measures along the value chain. For example, suppliers are evaluated according to conditions, required goods and alternative sourcing origins are checked, the processing of orders is prioritised, lead times are shortened, inventories are reduced, transport and storage processes are optimised, invoicing is accelerated, and much more.
Improving processes along the value chain:
- Product management: product development, streamlining of the product programme
- Procurement: procurement strategy, purchasing planning, order processing, incoming goods logistics, credit management, complaints handling
- Production: sales planning, inventory management, planning of production, planning of warehousing and outbound logistics
- Sales: sales strategy, customer management, order management, payment terms, receivables management
Improving the relevant processes can drastically reduce the need for working capital. The capital thus freed up should first be used in covid times to reduce the increased loans and lower the cost of capital. In addition to optimising the capital structure on the liabilities side, the assets side can also be improved – capacity is optimised and efﬁciency increased. Last but not least: the freed-up capital also enables expenditure in measures that increase earnings be it a market offensive, investments in development or reorganisation measures. We would like to support you in this – quickly, competently, pragmatically.