cash release
In businesses with cash constraints, tight working capital management is critical to survival. While debtors and creditors are a necessary component, stock holdings are another element that we always look at closely. Getting inventory right is not a trivial undertaking; the value of stock in manufacturing, wholesale and retail businesses is typically 30-40% of working capital – a figure roughly equivalent to the entire debtor book – and determines customer service levels. In collaboration with stock optimisation experts Sequoia, we employ a numerically-driven approach to deliver accelerated, pragmatic, stock reduction programmes in troubled businesses, permanently releasing cash to companies’ balance sheets.
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