Ways out of the working capital trap : empowering self-financing growth through modern supply management / Erik Hofmann [and others].
Especially in times of an economic boom following a crisis, companies have to deal with the phenomenon of the "working capital trap," which signifies a company's increasing need for financial liquidity in times of hindered access to debt capital, caused by the increasingly restrictive...
Saved in:
| Main Author: | |
|---|---|
| Format: | Ebook |
| Language: | English |
| Published: |
Berlin :
Springer,
2011.
|
| Series: | Professional supply management ;
2. |
| Subjects: | |
| Online Access: | Click here to view this book Springer eBooks |
| Summary: | Especially in times of an economic boom following a crisis, companies have to deal with the phenomenon of the "working capital trap," which signifies a company's increasing need for financial liquidity in times of hindered access to debt capital, caused by the increasingly restrictive credit approval processes of financial institutions. As a consequence of cost savings, this situation is often reinforced by a low level of inventory. This book takes up the problem and shows ways of escaping the "trap" by identifying and strengthening in-house financing potential. First, different operating ratios will be introduced. These refer to the amount of capital committed to the flow of goods and to the amount of in-house financing possible. Subsequently, methods for consolidating in-house financing that are affected by procurement processes will be presented from the company's and the supply chain's perspective. From a company's perspective, the methods for consolidating the amount of in-house financing over the following topics: " The Management of Payment Terms " Inventory Management " Product Group and Supplier Management From the supply chain's perspective, the following methods for extending the possible amount of in-house financing will be discussed: " Finance-Oriented Supply Chain Sourcing " Supply Chain-Oriented Supplier Financing " Collaborative Cash-to-Cash Management " Collaborative Cash Pooling and Netting " Supply Chain Financing Platforms The conceptual models will be clarified using a practical example from the automobile industry. Finally, the "Procurement Value Added" (PVA©) approach will be presented, a concept that measures the contribution of procurement to the company's success. |
|---|---|
| Physical Description: | 1 online resource : illustrations. |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 3642172717 9783642172717 |