Covid-19 pandemic took the world with a complete surprise like a typical “Black Swan” event. Coronavirus has created a bloodbath in the world of business. To control this pandemic, governments across the world are taking measures that have a major impact on all aspects of routine life and more impact on businesses. The measures taken to cope up with this pandemic has brought an unexpected turn in the global economy. There was no manufacturing, no sales, and no business in many sectors. Several businesses are running out of cash. Business leaders are now facing immediate challenges, including managing the cash flow as ‘cash is the king’.
A company’s post-COVID-19 strategy plan should include cash flow management as an integral element. Just like health experts are recommending to wash hands, wear masks, maintain social distancing and avoid crowd for not getting infected by a coronavirus, business experts are recommending the organizations to actively evaluate their cash flow requirements, assess potential risks to their customer base and supplier network, and develop appropriate action plan under various scenarios to save the business. One of the most important elements of cash flow management is inventory management, and the importance of inventory management is even more in such pandemic situations. So, the question comes – Is your organization taking the right steps to overcome the cash challenge in tough times? Just like businesses are taking care of the health of their employees, liquidity health of the business also needs to be kept under focus, as it has a huge impact on sales orders, receivable collections, and cash flow. It is the right time for organizations to shift the priorities as in addition to the health crisis, COVID-19 unexpectedly thrust a number of new economic priorities in such a challenging business environment. Accuracy of inventory management is getting more and more vital as businesses cannot afford to take any more risk in the current business environment – where the business is running out of cash.
To limit the locked-in value, businesses need to focus on effective inventory management. As it is said that “too much stock is money that sleeps needlessly.” Optimizing the cash flow is essential in this challenging period. Businesses are required to reduce the stock (without impacting the service levels) in a planned way to reduce its value and increase the cash flow. The need of the moment is to find a balance to establish a optimum stock value and maintain the business activity with the help of a robust inventory management mechanism.
Such extraordinary circumstances require extraordinary solutions. It is high time for any organization to rethink and revamp its inventory management mechanism. Using hands-on cumulative experience of over 200 years, team Faber Infinite offers an online consulting workshop to optimize inventory costs by 20% to 30% in span of 1 to 2 weeks only.
C-FIT Inventory Management Module by Faber Infinite Consulting includes.
- Detailed inventory analysis along with your team
- Training on Inventory Management Modules to all the key members
- Continuous online assistance on solution implementation
- Live online support by senior consulting partner
- Complimentary Monthly Reviews and Audits
C-FIT inventory management module deliverables include:
- Phenomenal financial savings with a reduction in inventory carrying costs
- Immediate cash improvements after implementation
- Projections of future inventory levels and procurement cycle (with improved accuracy)
- Improved internal stock handling efficiencies
- Optimize your logistics workflow
- Reduce manual inaccuracies
For more details contact us at [email protected]. We believe any organization with the right inventory management practices can go LEAN to bring cash flow improvements, without affecting the service levels.
Written & Compiled by Faber Mayuri & Faber Manasi