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In this economic crisis context, companies have focused on their Working Capital to generate cash and avoid bankruptcy. One of the most common measure is inventory reduction along the Supply Chain.

  • How to operate this reduction without jeopardizing product availability?
  • What stock management policies will ensure that the right product is at the right place at the right time?
  • Is my inventory made up of the appropriate components?

But the Working Capital Efficiency (WCE) cannot be reduced to the only stock: it is necessary to work on its globality by considering other causes as the trade receivables, the trade payables, or the liabilities on which we can act. That's why it is important to work on the Customers & Suppliers Interface:  

  • How to charge as early as possible while protecting myself against late payments? 
  • Are my invoice terms optimized by remaining within a legal framework?
  •  What levers can be used at what time to stabilize my WCE?

 

Decision Value can assist you to face these issues with the following approach:

 

  • Control of the global operational WCE 
    • Measure and Implementation of the needed dashboards 
    • Animation of thematical groups in order to activate WCE reduction levers
    • Implementation of a WCE normative approach
  • Implementation of inventory management adapted to each segment of products
    • Inventory composition analysis and short-term improvements identification
    •  Inventory optimization and definition of management parameters
    • Building of inventory allocation and deployment processes   
  • Cash-to-Cash cycle shortening
    • Formalization of the OTC (Order to Cash) STP (Source to Pay) processes
    • Implementation of an efficient ligitations management

Point of View - October 9th 2018

How to capitalize on SCM expertise to implement CSR strategy

In the previous Point of View, we highlighted the historical key stages leading to the emergence of CSR.

In the early 1980’s, the Supply Chain Management (SCM) concept arose to allow a better transversal integration of the company and valorization of  its resources to serve customer satisfaction and profitability, with fundamental principles a CSR approach can only approve.

However, one could object SCM focuses only on economics, while CSR integrates 3 axes: economy, social and the environment. Is this really the case? Although SCM seems to consider the interests of only 2 stakeholders (the shareholders for the profitability and its customers for the service), we ought not to under estimate the indirect social and environmental gains it creates. For example, the pacification of relationships within silos of the company, as well as with its suppliers and customers, or chasing down waste to limit scraps and material losses, without talking about transportation optimization decreasing greenhouse gas emissions.

Thus, Supply Chain Management, while being focused on the economic stake, directly or indirectly contributes to most of the CSR axes.

 

Therefore, it’s completely logical today to think about how to take advantage of SCM experience to facilitate the integration of CSR practices into the company?

 

 To learn more about it, click here.