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Forecast to Fulfil – Inventory Management (Work In Progress)

Deliveries to the customer are often delayed due to lack of appropriate product mix. Meanwhile the factory floor looks like it could serve the same number of customers or more for the next two years without replenishing any inventory. Raw material fed into the production unit seems to be never enough. WIP goods are stacked […]

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Customer to Cash – Customer Segmentation for AR

Collections represents the ‘end’ of a sales cycle. It also represents the firm’s ability to convert cash expended from when a customer order arrives through fulfillment and payment. For many firms the operating motto in this area of working capital management is to simply try to collect faster. Few go beyond to address this ‘end […]

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Anatomy of Success in Lean Application for the Service Sector

Lean application outside of the manufacturing sector is frequently met with scepticism. Oft cited reasons are that service providers do not ‘manufacture’ anything and that there is no ‘production line’ to speak of physically. All that is seen are desks, chairs, phones and computers.

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Tightening Credit Terms for Almost Free

How do we know if receivables are well managed to credit terms? Are we performing at our best? What if we are the best in industry according to external benchmarks? How may we then do better or is it possible at all? Credit managers often face these questions in the never-ending quest to collect to […]

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Forecast to Fulfill – SKU (Product) Proliferation

Supply chain strategies often take second or third place to operations in the growth and development phase of an organisation.  One of the unintended (though sometimes strategically intentional) operational consequences of aggressive growth, both organically as well as through M&As, is that of product or SKU proliferation. As a result, forecast to fulfill gets slowed […]

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Procure to Pay – Spend Policies

Spending, apart from capital investments, tends to grow a little faster then organisations in most cases. Left unchecked firms face a ‘mid-life’ crisis where working capital is stretched to levels requiring borrowings incurring heavier and heavier finance costs. This is often bringing down the Procure to Pay cycle.

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Customer to Cash – Dispute Management (Receivables)

A portion of collection activities often relegated to ‘customer service’ is that of actual dispute management, to turn customer to cash. Customers who need ‘correction’ on invoicing information, goods returned, quality claims, delivery issues get directed to a generic ‘customer service’ department.

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Cheap Cash – Working Capital Reduction

Credit lines drying up are common phenomena these days. Past credit performance, even with a great history, seems to have no impact on the decisions of banks to lubricate the wheels of commerce. There is, however, a relatively cheap and available source of cash many firms have that may be tapped into now: Working Capital. […]

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BPR Case Study: Preparation for ERP Purchase & Implementation

An Australian construction equipment rental & leasing firm had decided to implement an Enterprise Resource Planning system in 12 months. During this 12 month period there was an expectation that all front-end services including Sales, Customer Service, Receivables, Payables, would be re-designed to achieve streamlining and simplification prior to ERP implementation. Operations spanned 18 cities […]

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SMED Case Study: Steel Tools Manufacturer

After a Lean programme for inventory was instituted the production facility struggled with getting a good product mix out to the finished goods inventory due to relatively long change-over times for cutting dies. Steel tool (final product) cutting dies need to be replaced after every 4 Kanban batch runs of 225 pieces each. This frequent […]

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