Working Capital Management
Working Capital Management (WCM) is a corner store of sustainable value management. WCM adresses the three main parts of the working capital in a company: accounts receivable, inventories and accounts payable. Inventory defines the capability to deliver products and services but it as well is a source of liquidity. In an industrial company, inventories usually account for approximately 15% of the sales. To discharge liquidity and to improve the ability to deliver, a professional inventory management is required. dispo+ is the method to optimise these trade-offs.
SOLTAR Expertise dispo+
dispo+ optimizes the inventories and the capability to delivery at the same time. dispo+ consists of three modules. In Module 1 TRANSPARENCY, inventory-, consumption- and master data are being analysed on selected levels of aggregation.
In Module 2 STRATEGY & GOALS, strategies (e.g. planning- and consumption control) and inventory objectives are being defined.
dispo+ provides in Module 3 ERP PARAMETER OPTIMISATION the possibility to calculate and update the planning master data and to simulate the sensitivity of the stockholding scenarios.
dispo+ contains a checklist of over 50 individual measures, which could be evaluated for every single company. SOLTAR can support the implementation of these measures.
Your benefits of dispo+
- Estimate the potential of inventory reduction and the improvement of delivery performance
- Transparency of inventories
- Rating the master data quality
- Alignment top-down objectives with industrial benchmarks und bottom-up objectives
- Realistic cashflow planning
- Inventory reduction of 10–30%
- Update of the planning master data (e.g. safety-/reorder points)
- Information technology solution and methods for the standardized master data support
Excerpt from references
Head Logistics, Sika Supply Center, Sika
Managing Director, Noventa AG
CFO, SwissOptic AG und and Head Operations