keep the cash flowing: streamline supply chain operations to maximize cash flow and drive focused...
DESCRIPTION
Recent challenges and uncertainty in the US economy have forced mid-market companies to focus on cash flow to support growth. This webinar discusses: •Cash flow challenges for mid-market companies •Ideas to shorten the “order to cash” cycle •4 areas where supply chain efficiency can help cash flow Please download the slide notes or view the recorded webcast after the final slide for the full presentation transcript.TRANSCRIPT
Part of TAKE Supply Chain’s ongoing webinar series: Optimizing Supply Chains in a Global and Mobile Economy
Keep the Cash Flowing: Streamline Supply ChainOperations to Maximize Cash Flow and Drive Focused Growth
WEBINAR
Key TAKE-Aways
Pressures on mid-market companies
External factors
Cash flow
Adjusting to the new reality
Shorten your supply chain “order to cash cycle”
Inventory balance
Smooth Shipments; On-time Deliveries
Focus on the financial supply chain
Prioritize customer satisfaction
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Part of TAKE Supply Chain’s ongoing webinar series: Optimizing Supply Chains in a Global and Mobile Economy
Increase Integration with your CMOs and 3PLsfor a More Powerful Supply Chain
Part of TAKE Supply Chain’s ongoing webinar series: Optimizing Supply Chains in a Global and Mobile Economy
Keep the Cash Flowing: Streamline Supply ChainOperations to Maximize Cash Flow and Drive Focused Growth
WEBINAR
Lowered expectations of US economic growth
Political & regulatory uncertainty
Increasing tax rates & health care costs
Increasing labor costs
Lack of a qualified workforce
Improved quality of goods from China, India, and Mexico
Decreased brand loyalty
Pressures on the Middle Market
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Drive to Grow
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Despite challenges mid-market companies still focused on growth
Less Waste• Re-designed operational processes• Efficient IT initiatives• Risk management
More Revenue• New customers• New products• Cross/Upsell• Geographic Expansion
Cash Flow is a More of Concern
Mid-Market companies feel more cash flow pressure
Lower Revenues
Lack of Influence
Payment Terms
Capital Considerations
Bank Financing
Global Concerns
Cash Flow
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Adjusting to the New Reality
Focusing on core business
Personalization & regional preferences
Taking advantage of nimbleness
Smart technology investments
Prioritizing cash flow throughout the company
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Many companies have made the shift
http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_dges_2013americaseconomicengine_04162013.pdf
46% of executives ranked technology as a top investment priority in 2013
Increase Supply Chain Cash Flow
Streamline processes
Minimize costly mistakes and delays
Improve agility to address the unexpected
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Shorten the “order to cash” cycle, by implementing changes to:
1) Inventory Balance
Minimize product variety
Cut the inventory “fat”
Reduce large orders
Cross-docking
Tax advantages
Flexible suppliers & terms
And…
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One of the TOP areas to improve cash position:
20 - 30% of product costs may be tied up in inventory; for some products, it can be as much as 50%
1) Inventory Balance cont’d
Faster order cycle
Better visibility into order status
More power to react and adjust
Flexible platforms can integrate with:Internal systems such as ERP, MRP, and/or AP
Warehouse management
Vendor systems
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Purchasing Collaboration
ERP Vendor SystemsFlexible platform
2) Smooth Shipments; On-Time Deliveries
Minimize errors (and delays) with Shipping Collaboration
Track ASNs & Goods Receipt
Optimize inventory routes
Source locally
Avoid expedited shipping (unless it makes financial sense)
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Delivery delays can mean payment delays
3) Focus on the Financial Supply Chain
Match POs, Goods Receipts, & Quality Usage Data
Net payments at due date
Dynamic discounting
Cut unnecessary approvals
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…with AP Automation
4) Prioritize Customer Satisfaction
Easy & low cost returns
Product & shipment
quality
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Fewer returns, happier customers
• Track / Review 3PLs & vendors
• Increase visibility throughout the supply chain
• Negotiated return shipping costs
• Provide a return label
• Local replacement or repair
OneSCM® to Support Supply Chain Cash Flow
Flexible Integration
Dynamic Dashboards
Scalable Workflow Automation
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PO
Closed Loop Procure to Pay
Demand Collaboration
PO Collaboration
Ship Collaboration
AP Automation
Who is TAKE Supply Chain?
Focused on significantly improving global trading partner collaboration and process efficiency in the manufacturing & distribution space
Solutions delivered in the cloud, on-premise, and on mobile devices
Two decades of experience in data collection and collaboration
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“…TAKE clearly understands the nature of successful supply chain management…”
— Ann Grackin, CEO, Chainlink Research
www.takesupplychain.com
A division of TAKE Solutions, Inc. © 2014 TAKE Solutions, Inc.All other trademarks are property of their respective owners.