Taming the Bullwhip: 3 Key Strategies for Smarter Supply Chain Management This article will explore the causes of the bullwhip effect: its impact on a company’s supply chain, operating working capital and cash conversion cycle. By understanding these effects, businesses can improve coordination, enhance forecasting accuracy, and build a more agile, resilient supply chain. The…
Considerations when Benchmarking Working Capital This article explores the use of Benchmarking Working Capital as a tool for evaluating a company’s performance. It examines its relevance, highlights associated challenges, and outlines three key considerations companies should factor in when determining their optimal operating working capital needs. Key Take Aways Want to own this article? Download…
What is Good Operating Working Capital – Introducing the Setpoint Theorem This article explains what good operating working capital looks like, what affects this level, and why it is important to maintain. It also introduces the operating working capital Setpoint theorem. This suggests all companies have an optimal level it should maintain in order to…
Lean Operating Working Capital – an Introduction This article will introduce the concept of Lean Operating Working Capital and its associated Setpoint philosophy. It will explain its origin, what it is, why it is important and its benefits. It will also briefly talk about why it is not only a finance concern, but must be…
Operating Working Capital and Supply Chain Bias This article introduces the concept Supply Chain Bias. It describes what it is, what causes it, and its implications on Operating Working Capital performance. It also describes 5 common Supply Chain Biases to watch out for, and provides high level insights into how companies can effectively transcend their…
Strong Operating Working Capital Practices Influence Profitability This article explains how strong operating working capital practices influences not only a company’s cash conversion cycle, but also its topline and cost. The article will provide examples of how sustained improvements to operating working capital affect companies profitability, why cross functional participation is key, as well as…