Cashchain series using S&OP thinking for business advantage

This will be a first in many posts of real capability in simple bit size form you can use to improve cashflow, working capital utilization and overall business performance for you business

1.  Learn and understand the theory of inventory… why it exists.

So our view at / DCRA Inc. is inventory is simply a lead time buffer to meet a customer need (product in x lead time).    So rather then think about inventory as “bad” think about the lead time associated with it

Now mix it up a bit.   Offer same item for x price for x minus price if the customer gives you more lead time ?  Maybe you can plan production better, drop ship from a supplier or other.  A new revenue and pure profit opportunity.

More at…

Tip2 comming soon

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *