Whole Network Employment Interviews Market Overview Partnerships Point of view Products Technology

 

Best performers care about working capital optimization

Filed in archive Best practice by ehsan on August 10, 2007

finance-scm-aberdeen-logistics.jpg
Aberdeen Group has recently published a report with the title "working capitallinks Optimization: Improving Performance with Innovations and New Technologies in Inventory Management and Supply Chain Finance". This report which is based on a survey of more than 400 professionals in supply chain and finance area emphasizes the importance of working capital optimization for global trade companies. In its survey, Aberdeen found that 65% of respondents thought working capital optimization was a high priority for their companies.

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






Permalink: Best performers care about working capital optimization
Tags: inventory  management  supply  chain  management  finance  scm  logistics  working  capital  optimization  aber 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/85636





RSSrss   | See all blog subscribe options
Google google   |   What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter
Grouptivity

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give us a call at +1 (650) 331 4900.


  • Testimonials

  • Frankly, the site is what TechPlanet Asia is collectively aspiring to. Ehsan covers indepth issues pertaining to the global transportation, logistics, supply chain and RFID industries, and also has an impressive blogroll. Highly recommended! ---- Raoul Le Blond of SCMTech Planet Asia

    I am a regular reader of your blog and it helps me learn & understand the domain of SCM and industry better ---- Rajiv Renganathan, Manhattan Associates


  • Other blogs in the same channel in the Creative Weblogging Network







 

Tagcloud: Basics Best practice Book Review Education Employment General Green supply chains Guest Column Implementation Interviews Market Overview merger and acquisition News Partnerships Point of view Practical Tips Products Research Special Events Sponsored Post Supply chain video Sustainability and supply chain Technology