Reducing Inventory Now: Unlock Working Capital In these times of economic uncertainty and global credit crunch, companies are fervent to improve financial performance with practical and prompt initiatives. Working capital optimization is key as companies shift strategies in order to resuscitate their financial health. Still, customer satisfaction can't be forgotten, and companies must find ways to control spending and cut costs all while keeping pace with their peers.
Unlocking Working Capital: Best Practices for Reducing Inventory The macro-economic situation facing manufacturers today is extremely challenging with a perfect storm of volatile fuel prices, reduced consumer spending and challenges in getting credit. Enterprises need to be proactive in this situation and must look for ways to improve cash flow without the need for major new demand generation activities. This document highlights cost-effective and practical ways to reduce inventory so that working capital can be released, while also providing caution against doing short term changes that will have a long term negative impact.
"Soft drinks are in what's known as FMCG-fast-moving consumable goods-where products are driven by promotions, as well as seasonal factors. As in other retail sectors, certain customers will buy in certain weeks, rather than within months, so it's vital to forecast on a weekly basis."...more
