Materials Manager - Reduce DOI (Days On-Hand Inventory) by 5 days.
Total cash to cash cycle flow increase of 8 days. A key to improving performance is ensuring the changes/initiatives are sustainable. For example, while focusing collection efforts may improve cash flow in the short term, it may not create a long term solution. While teaming with all disciplines the improvements may include a focus on returns and reworks that influence employee satisfaction which may also be influenced by employee training. A balanced scorecard view of the organization from financial, customer, process and learning identifies variables to create long term gains.
Another example is a DOI strategy that focuses on short term success and long term sustainability with other elements of the company is key. A single minded focus on inventory turnover to achieve cash flow goals for example may eventually impact customer satisfaction if inventory fails to a level that compromises customer service.
Strategically plan the increase of cash flow with no interruption to the customers both internally and externally to the organization.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” - Jack Welch