SOLTAR – Expertise with Approach
The SOLTAR Services “Expertises with Approach” improve the purchasing and supply chain know-how and the purchasing and supply chain processes of our customers at low costs, low risks and measurable high ROI (Return-on-Investment).
SOLTAR – Generates cash in procurement and in supply chain
Procurement and supply chain management offer large potentials to increase cashflows and to improve operating profit margins.
Trade average: 53%
In an average company with 50% purchasing volume/ sales and with 5% operating margin, a 2% reduction in procurement costs (total-cost-of-ownership) has the same effect on the operating margin as a 20% increase in sales – you also could benefit from this potential!
Trade average: 25%
In an average company (Swiss Performance Index), 25% of sales are embedded in working capital. A 25% reduction in working capital increases the value of a company by an average of 7,5%. This effect compares to 28% growth in sales over 5 years – you also can benefit from this potential!
Trade average: 7.9%
On average, capital costs (WACC – Weighted Average Cost of Capital) are 7.9% at average borrowing costs after taxes of 5.2% and average equity capital costs after taxes of 9.1%. A reduction of capital costs by 0.5% increases the enterprise value by 3%.
Trade average: 7%
In an average production enterprise the costs of logistics amount 7% of the sales. Each %-reduction improves the operatin margin the same dimension – you also can benefit from this potential
SOLTAR supports companies, to converse systematically those procurement and supply chain potentials and provides a value increase of the company.