Working Capital Management

We buy components, ingredients or finished products and sell them for a profit. A simple business structure. Add in a blend of markets, customers and products and it is still relatively simple at transaction level. The model delivers a gross profit margin that is ideally greater than your cost to operate. When did you last service this model to ensure it’s performance is optimal?
Are there parts that could be redesigned to improve performance or a better use of new technology?

  • Do you know how much of your nett profitability is delivered through your sales price versus your cost of goods or cost to operate?
  • Is your product performing for you?
  • What is the real cost of your stock?
  • Have you examined you pricing structures?
  • How can you get more from your working capital and release cash into your business?

The Process

Step 1


  • Meet with Key Stakeholders
  • Establish what the current trading position is
  • Understand the driving factors and perceived limitations

Step 2

Data build

  • Compile raw data relating to cost of goods, purchase behaviour and warehouse utilisation
  • Build a dynamic model to reflect the current situation
  • Create synthetic views of what can be delivered and considerations involved

Step 3


  • Communicate findings and adjustment plan to key personnel¬†
  • Build a framework to support in-life management which should incorporate business management and information systems

Step 4

In-life management

  • Facilitate training to support revised operating procedures
  • Monitor

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