Cash flow acceleration is a critical aspect of any business operation, and manufacturing companies are no exception.
In fact, with customers often asking for 120 days of credit and vendors demanding payment in just 30 days, cash flow management becomes even more critical for manufacturing companies.
Additionally, companies planning for sales growth need more working capital, and timely salary payments to employees are a must. Due to these reasons, cash flow management is essential. We offer a range of services that can help manufacturing companies manage their cash flow efficiently.
Defining the Business Goal
Our first step is to define the holistic goals in the minds of top management not just the sales turnover. The single goal is “Absolute Profits without Cash Loss” with least time of Top Management”. Whole perspective of top management changes when the understand real and holistic goal measurements like Cash velocity and Peaceful Time, ROI, ROTI© (Return on Time Invested) are understood. The whole decision-making process is governed by the Theory of Constraints (TOC), Better than Before habit.
Material Flow and Cash velocity
Improving material flow is key to better cash flow. We help our clients improving the material flow through better flow of information through SCM processes and better material flow by eliminating bottleneck(s) through application of Theory of Constraints (TOC). This material better flow results in better Cash Conversion Cycle Time, in other words, cash velocity is increased.
Payment Collection System
We help our clients establish a systematic payment collection method that ensures timely payments from customers. We help create regular, systematic data-based reports that help our clients keep track of customer payments and take corrective action, if necessary. We analyze the data to identify trends and patterns, which can help our clients make informed decisions to improve cash flow.
Vendor Payment System
We also help our clients establish a system ensuring on time payment to vendor partners. By ensuring timely payments to vendors, we help our clients build strong relationships with their suppliers, which can help them negotiate better payment terms in the future. We help you monitor vendor payments regularly to identify any delays or discrepancies, enabling you to take corrective action promptly.
Strategic Product / Service Value Proposition
We work to understand your target market and identify gaps in your product or service portfolio. By developing a more targeted and effective / innovative products and services strategy, we can help you attract more customers and get advance payments after effect effective deployment of APQP product development process.
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