Saturday, March 13, 2010

Supply Chains - Lean the Bottom Line with Top Line Flats

With the continued downturn in the economy it is a key for supply chain to squeeze out costs and increase cash flow. Cash flow increases from top companies could amount to $709 billion according REL a division of Hackett Group.

• Adjusting inventory levels                                           
• Ensuring customer payments on time
• Managing accounts payable

Reducing the cash tied up in working capital (Inventory, Receivables, etc.) is good because it increases the amount of cash available for a company to invest or return to the shareholder. Companies should emphasize freeing cash flow with current challenge of flat to decreased revenues to stay ahead of the competition.  As Jack Welch states,
“Control your own destiny or someone else will.”

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