A holistic approach to the management of inventory, WIP and payables can yield significant, short term P&L benefits. Typical areas of scrutiny:
1. The inventory cycle (raw material – WIP – finished goods) including planning, forecasting and ordering.
2. Supplier lead times, buffer stock, minimum order quantities.
3. The balance between payables and receivables with particular focus on supplier payment terms and any advance, milestone or contractual payments.
4. The identification of obsolete assets and disposal value.
bluewire: Supply Chain Specialists