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Best practice
by ehsan on August 10, 2007

The top twenty percent of performers in the study (Best in Class) have an average cash conversion cycle that is 5-6 times shorter than that of the rest of survey participants. Best in Class companies in this study are:
1.6 times as likely to be using supply chain/ inventory visibility technology. Firms that are using this technology are:
- Twice as likely to have reduced total landed costs over the past 2 years
- 2.4 times as likely to have reduced inventory levels since 2004
- 3 times as likely to have faster-than-average order-to-delivery Cycles
- Twice as likely to have reduced lead times & lead time variability from international locations in the past 2 years
- Almost twice as likely to report increased global supply chain budget accuracy over the past 2 years
Twice as likely as Laggards to have access to receivables/ payables/inventory financing at various stages in their supply chains. Firms with this capability are:
- Almost twice as likely to have reduced their cash conversion cycle over the past 2 years
- Fifty percent more likely to have improved their return on Capital
Tags:
inventory
management
supply
chain
management
finance
scm
logistics
working
capital
optimization
aber
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/85636
Mr Wong
Vote for Best performers care about working capital optimization:
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Rating: 8.50 out of 2 vote(s) cast.
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Response from:
Business Tips
(07/18/09 4:49pm)
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