SlideShare a Scribd company logo
1 of 40
Optimise & Integrate - WCM & SCM Managing Assets & Liquidity in Supply Chain Anand Subramaniam
[object Object],[object Object]
Highlights ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SCM - Overview
Your Supply Chain
SCM - Drivers Improve customer service Improve order management Corporate growth Improve asset use Improve demand planning Improve warehouse/distribution activities Accelerate “cash to cash” cycle Supplier/supply base management Strengthen partnerships Regulatory compliance
SCM - Material & Financial Flow Receive Goods and Invoice Send Payment Reconcile and  Account Send Purchase Order Credit Application Negotiate Sales Terms Select Supplier and Goods Source Suppliers Supply Chain of the Buyer Receive  Order Produce Goods Manage Inventory Distribute  Goods Material Supply Chain Supply Chain of the Seller Material Supply Chain Evaluate Credit Reconcile Settle  & Pay Issue  Invoice Forecast  Cash Finance Working Capital Resolve Disputes Financial Supply Chain
SCM Metrics - Impact on P&L and B/s
SCM Metrics – Impact on P&L ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SCM Metrics – Impact on B/s ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WCM - Overview
WCM - Objectives ,[object Object],[object Object]
Working Capital Management (WCM) WCM can deliver significant business benefits in a relatively  short period  of time, where  idle capital  can be effectively & efficiently utilised Inventory Management Debtors  Management Creditors  Management Working  Capital Management Consolidate supplier base to maximise purchasing and payment efficiency Unlock cash tied in stocks, reduce  SKU’s, review product profitability, demand  forecasting Improve Debtors & Credit Control
WC - Current Challenges Current Challenges Customers taking longer to pay Inability to balance working capital and to convert stock or debtors into cash Costs rising Profit margins under pressure Doubts about ability to make serious capital repayments on loans within the next six or seven months Turnover falling
Cash Conversion Cycle
Working Capital Strategies Financial Performance Profitability Growth Capital Utlisation Cost of Goods Sold Selling Price Fixed Capital Utilisation Working Capital Utilisation Days Inventory Days Sales Outstanding Days Purchase Outstanding
Cash Conversion Cycle
WCM – Review existing policies, procedures, processes etc
Departmental Conflicts..  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value Marketing Finance Production
Revisit Working Capital Determinants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Revisit WC- Policies Higher Profits / Higher Risk Lower Profits / Lower Risk Trade-off Between Profitability and Risk Shorter than Industry Average Longer than Industry Average Operating and Cash Cycles With Short-term Debt With Long-term Debt and Equity How Current Assets are Financed Lower than Industry Average Higher than Industry Average Current Ratio Low High Levels of Current Assets Aggressive Conservative Working Capital Policy
Formulae
WCM – Forecast & Optimisation
Forecast WCM Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits from Optimised WCM ,[object Object],[object Object],[object Object],[object Object],[object Object]
Your Firm’s WC – Requirement Amount Current Assets (i) Stock of Raw Materials ( for ….month’s consumption)  ----- (ii)Work-in-progress (for…months) (a) Raw Materials  ----- (b) Direct Labour ----- (c) Overheads ----- (iii) Stock of Finished Goods ( for …month’s sales) (a) Raw Materials ----- (b) Direct Labour ----- (c) Overheads ----- (iv) Sundry Debtors ( for …month’s sales) (a) Raw Materials ----- (b) Direct Labour ----- (c) Overheads ----- (v) Payments in Advance (if any) ----- (iv) Balance of Cash for daily expenses ----- (vii)Any other item  ----- Less : Current Liabilities (i) Creditors (For….. Month’s Purchases) ----- (ii) Lag in payment of expenses ----- (iii) Any other  ----- WORKING CAPITAL ( CA – CL )  Add : Provision  / Margin for Contingencies ----- Net Working Capital Required  XXX
Working Capital Review ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Agreed Action Items Period 3 Monthly Review Output Review Action Items Monthly Review Output Agreed Action Items Review Action Items Monthly Review Output Agreed Action Items Period 2 Period 1
SCM & WCM – Integrated Framework
SCM & WCM Framework Cash & Working Capital Mgmt. Supplier - Supply Chain Plan / Invest (Long-term Capital) Sell &  Negotiate Supply Chain Risk Mgmt. Outbound Logistics Invoicing Collection Production (Production Financing) Buyer - Supply Chain Financing  (e.g. lines of credit, term loans) Risk Management (e.g. insurance, bonding)  Compliance Management (e.g. SOX, customs, security) Connectivity (e.g. technology platforms) Other Services (e.g. consulting, education, trade promotion) Plan / Invest (Long-term Capital) Source &  Procure Supply Chain Risk Mgmt. Inbound Logistics Invoice Processing Payment Production (Production Financing)
SCM & WCM – Metrics & Measures
SC Performance – Return on Assets
SCM Goals Unit Cost Reduction Time Reduction Waste Reduction Flexible Response SCM Goals
Financial Benefits Improved Working Capital & Margins Improved Cash Flows Revenue  Profit Growth Higher Return on Assets Financial Benefits
Customer Benefits Improved Value Improved or New Product / Service Quality Improved Flexibility Improved Timelines Customer Benefits
SCM Improvements Integrate People, Process & Systems Improved Decision Making Strategic Partner Relations Product / Service Innovation SCM Improve-ments
Performance Measures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Performance Measures ,[object Object],[object Object],[object Object],[object Object],[object Object]
Further Information
Please Review Slides On LinkedIn ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object]

More Related Content

What's hot

Executive S&OP Case Study presented at GPSEG
Executive S&OP Case Study presented at GPSEGExecutive S&OP Case Study presented at GPSEG
Executive S&OP Case Study presented at GPSEGguestdd5f19
 
Supply Chain Management Introduction PowerPoint Presentation Slides
Supply Chain Management Introduction PowerPoint Presentation Slides Supply Chain Management Introduction PowerPoint Presentation Slides
Supply Chain Management Introduction PowerPoint Presentation Slides SlideTeam
 
Value Stream Mapping
Value Stream MappingValue Stream Mapping
Value Stream MappingTKMG, Inc.
 
Process Change: Communication & Training Tips
Process Change:  Communication & Training TipsProcess Change:  Communication & Training Tips
Process Change: Communication & Training TipsTKMG, Inc.
 
Value Stream Mapping: Case Studies
Value Stream Mapping: Case StudiesValue Stream Mapping: Case Studies
Value Stream Mapping: Case StudiesTKMG, Inc.
 
Lean, Six Sigma, ToC using DMAIC - Measure phase
Lean, Six Sigma, ToC using DMAIC - Measure phase Lean, Six Sigma, ToC using DMAIC - Measure phase
Lean, Six Sigma, ToC using DMAIC - Measure phase Simon Misiewicz
 
Business Process Improvement
Business Process ImprovementBusiness Process Improvement
Business Process ImprovementAnand Subramaniam
 
Value Stream Mapping -The Concept
Value Stream Mapping -The ConceptValue Stream Mapping -The Concept
Value Stream Mapping -The ConceptSubhrajyoti Parida
 
Value Stream Mapping
Value Stream MappingValue Stream Mapping
Value Stream MappingCIToolkit
 
Supply chain management
Supply chain managementSupply chain management
Supply chain managementwahyudisandy
 
Business Performance Improvement Models by Operational Excellence Consulting
Business Performance Improvement Models by Operational Excellence ConsultingBusiness Performance Improvement Models by Operational Excellence Consulting
Business Performance Improvement Models by Operational Excellence ConsultingOperational Excellence Consulting
 
Supply chain management
Supply chain managementSupply chain management
Supply chain managementBeenu Gulia
 
2011 business process management
2011 business process management2011 business process management
2011 business process managementAreté Partners
 

What's hot (20)

Sustainability and the Supply Chain
Sustainability and the Supply ChainSustainability and the Supply Chain
Sustainability and the Supply Chain
 
Value Stream Mapping
Value Stream MappingValue Stream Mapping
Value Stream Mapping
 
Executive S&OP Case Study presented at GPSEG
Executive S&OP Case Study presented at GPSEGExecutive S&OP Case Study presented at GPSEG
Executive S&OP Case Study presented at GPSEG
 
Supply Chain Management Introduction PowerPoint Presentation Slides
Supply Chain Management Introduction PowerPoint Presentation Slides Supply Chain Management Introduction PowerPoint Presentation Slides
Supply Chain Management Introduction PowerPoint Presentation Slides
 
Value Stream Mapping
Value Stream MappingValue Stream Mapping
Value Stream Mapping
 
Process Change: Communication & Training Tips
Process Change:  Communication & Training TipsProcess Change:  Communication & Training Tips
Process Change: Communication & Training Tips
 
Value Stream Mapping: Case Studies
Value Stream Mapping: Case StudiesValue Stream Mapping: Case Studies
Value Stream Mapping: Case Studies
 
Lean, Six Sigma, ToC using DMAIC - Measure phase
Lean, Six Sigma, ToC using DMAIC - Measure phase Lean, Six Sigma, ToC using DMAIC - Measure phase
Lean, Six Sigma, ToC using DMAIC - Measure phase
 
Operations Strategy Handbook
Operations Strategy HandbookOperations Strategy Handbook
Operations Strategy Handbook
 
Reverse Logistics
Reverse LogisticsReverse Logistics
Reverse Logistics
 
Business Process Improvement
Business Process ImprovementBusiness Process Improvement
Business Process Improvement
 
S&OP Implementation Roadmap
S&OP Implementation RoadmapS&OP Implementation Roadmap
S&OP Implementation Roadmap
 
Value Stream Mapping -The Concept
Value Stream Mapping -The ConceptValue Stream Mapping -The Concept
Value Stream Mapping -The Concept
 
Value Stream Mapping
Value Stream MappingValue Stream Mapping
Value Stream Mapping
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
Business Performance Improvement Models by Operational Excellence Consulting
Business Performance Improvement Models by Operational Excellence ConsultingBusiness Performance Improvement Models by Operational Excellence Consulting
Business Performance Improvement Models by Operational Excellence Consulting
 
Lean Process Improvement Techniques
Lean Process Improvement TechniquesLean Process Improvement Techniques
Lean Process Improvement Techniques
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
2011 business process management
2011 business process management2011 business process management
2011 business process management
 
Lean Manufacturing
Lean ManufacturingLean Manufacturing
Lean Manufacturing
 

Viewers also liked (20)

5 S – Manufacturing Audit
5 S – Manufacturing Audit5 S – Manufacturing Audit
5 S – Manufacturing Audit
 
FMEA Analysis Cycle
FMEA Analysis CycleFMEA Analysis Cycle
FMEA Analysis Cycle
 
Cause & Effect
Cause & EffectCause & Effect
Cause & Effect
 
Business Plan
Business PlanBusiness Plan
Business Plan
 
Defects Vs. Errors
Defects Vs. ErrorsDefects Vs. Errors
Defects Vs. Errors
 
Sales Performance Measures
Sales Performance MeasuresSales Performance Measures
Sales Performance Measures
 
Link (Non)Financial To Supply Chain Performance Metrics
Link (Non)Financial To Supply Chain Performance MetricsLink (Non)Financial To Supply Chain Performance Metrics
Link (Non)Financial To Supply Chain Performance Metrics
 
Erp (Re) Implementation
Erp (Re) ImplementationErp (Re) Implementation
Erp (Re) Implementation
 
5 S – Office Audit
5 S – Office Audit5 S – Office Audit
5 S – Office Audit
 
Enterprise Content Management (ECM) System
Enterprise Content Management (ECM) SystemEnterprise Content Management (ECM) System
Enterprise Content Management (ECM) System
 
Muda in service industries
Muda in service industriesMuda in service industries
Muda in service industries
 
Quality Tools
Quality ToolsQuality Tools
Quality Tools
 
Gemba kaizen
Gemba kaizenGemba kaizen
Gemba kaizen
 
Software Development
Software DevelopmentSoftware Development
Software Development
 
Six Sigma Lean (SSL)
Six Sigma Lean (SSL)Six Sigma Lean (SSL)
Six Sigma Lean (SSL)
 
Idea Management & Systems
Idea Management & SystemsIdea Management & Systems
Idea Management & Systems
 
Material Handling
Material Handling Material Handling
Material Handling
 
CTQ Matrix
CTQ MatrixCTQ Matrix
CTQ Matrix
 
Project Initiation Checklist
Project Initiation ChecklistProject Initiation Checklist
Project Initiation Checklist
 
Ninbennoaru Jidoka
Ninbennoaru JidokaNinbennoaru Jidoka
Ninbennoaru Jidoka
 

Similar to Optimise & Integrate WCM & SCM

Presentation to AMI university on Value Chain fundamentals
Presentation to AMI university on Value Chain fundamentals Presentation to AMI university on Value Chain fundamentals
Presentation to AMI university on Value Chain fundamentals Wajihuddin
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital ManagementDayasagar S
 
FP&A For Sales And Operations For Sales And Operations Planning Icpas Ju...
FP&A For Sales And Operations For Sales And Operations Planning  Icpas Ju...FP&A For Sales And Operations For Sales And Operations Planning  Icpas Ju...
FP&A For Sales And Operations For Sales And Operations Planning Icpas Ju...Barrett Peterson
 
Supply Chain Best Practices
Supply Chain Best PracticesSupply Chain Best Practices
Supply Chain Best PracticesTom Craig
 
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Callidus Software
 
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark Survey
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark SurveySIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark Survey
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark SurveyCoupa Software
 
Supply chain management ppt @ bec doms
Supply chain management ppt @ bec domsSupply chain management ppt @ bec doms
Supply chain management ppt @ bec domsBabasab Patil
 
Strategic Sourcing & E Procurement
Strategic Sourcing & E ProcurementStrategic Sourcing & E Procurement
Strategic Sourcing & E ProcurementAnand Subramaniam
 
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...Building a Powerful Business Case That Will Resonate With All Key Stakeholder...
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...SAP Ariba
 
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI)Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI)Anand Subramaniam
 
How Collinson Grant helps retailers to maximise operational excellence
How Collinson Grant helps retailers to maximise operational excellenceHow Collinson Grant helps retailers to maximise operational excellence
How Collinson Grant helps retailers to maximise operational excellenceCheshire East Council
 
Pragmatic Approach to Data Science
Pragmatic Approach to Data SciencePragmatic Approach to Data Science
Pragmatic Approach to Data ScienceKanchana Weerasinghe
 
Revisionon g business
Revisionon g businessRevisionon g business
Revisionon g businessErnest Chan
 

Similar to Optimise & Integrate WCM & SCM (20)

Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 
Presentation to AMI university on Value Chain fundamentals
Presentation to AMI university on Value Chain fundamentals Presentation to AMI university on Value Chain fundamentals
Presentation to AMI university on Value Chain fundamentals
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 
FP&A For Sales And Operations For Sales And Operations Planning Icpas Ju...
FP&A For Sales And Operations For Sales And Operations Planning  Icpas Ju...FP&A For Sales And Operations For Sales And Operations Planning  Icpas Ju...
FP&A For Sales And Operations For Sales And Operations Planning Icpas Ju...
 
Working capital management
Working capital managementWorking capital management
Working capital management
 
Supply Chain Best Practices
Supply Chain Best PracticesSupply Chain Best Practices
Supply Chain Best Practices
 
Supply Chain Performance
Supply Chain PerformanceSupply Chain Performance
Supply Chain Performance
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
 
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark Survey
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark SurveySIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark Survey
SIG Global Summit 2010 - Williams-Sonoma - Beyond the Benchmark Survey
 
Supply chain management ppt @ bec doms
Supply chain management ppt @ bec domsSupply chain management ppt @ bec doms
Supply chain management ppt @ bec doms
 
Strategic Sourcing & E Procurement
Strategic Sourcing & E ProcurementStrategic Sourcing & E Procurement
Strategic Sourcing & E Procurement
 
B-Supply Chain Management
B-Supply Chain ManagementB-Supply Chain Management
B-Supply Chain Management
 
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...Building a Powerful Business Case That Will Resonate With All Key Stakeholder...
Building a Powerful Business Case That Will Resonate With All Key Stakeholder...
 
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI)Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI)
 
supply-chain-finance-jul17.pdf
supply-chain-finance-jul17.pdfsupply-chain-finance-jul17.pdf
supply-chain-finance-jul17.pdf
 
How Collinson Grant helps retailers to maximise operational excellence
How Collinson Grant helps retailers to maximise operational excellenceHow Collinson Grant helps retailers to maximise operational excellence
How Collinson Grant helps retailers to maximise operational excellence
 
Project financing
Project financingProject financing
Project financing
 
Pragmatic Approach to Data Science
Pragmatic Approach to Data SciencePragmatic Approach to Data Science
Pragmatic Approach to Data Science
 
Revisionon g business
Revisionon g businessRevisionon g business
Revisionon g business
 

More from Anand Subramaniam

More from Anand Subramaniam (20)

Lean transformation
Lean transformationLean transformation
Lean transformation
 
Lean principles
Lean principlesLean principles
Lean principles
 
Lean thinking
Lean thinkingLean thinking
Lean thinking
 
Anand dossier 2
Anand dossier 2Anand dossier 2
Anand dossier 2
 
Anand short dossier
Anand short dossierAnand short dossier
Anand short dossier
 
Set up reduction
Set up reductionSet up reduction
Set up reduction
 
Waste Walk ~ Audit
Waste Walk ~ AuditWaste Walk ~ Audit
Waste Walk ~ Audit
 
3 MU
3 MU3 MU
3 MU
 
LSS Idea Generation to Project Execution
LSS Idea Generation to Project ExecutionLSS Idea Generation to Project Execution
LSS Idea Generation to Project Execution
 
LSS - 5 Year Strategy
LSS -  5 Year StrategyLSS -  5 Year Strategy
LSS - 5 Year Strategy
 
Lean Six Sigma Projects & Strategy Linkage
Lean Six Sigma Projects & Strategy LinkageLean Six Sigma Projects & Strategy Linkage
Lean Six Sigma Projects & Strategy Linkage
 
CMMI & Six Sigma Integration
CMMI & Six Sigma IntegrationCMMI & Six Sigma Integration
CMMI & Six Sigma Integration
 
CMMI Capability Maturity Model Integration
CMMI   Capability Maturity Model Integration CMMI   Capability Maturity Model Integration
CMMI Capability Maturity Model Integration
 
8 D – Problem Solving Process
8 D – Problem Solving Process8 D – Problem Solving Process
8 D – Problem Solving Process
 
Total Productive Maintenance
Total Productive MaintenanceTotal Productive Maintenance
Total Productive Maintenance
 
TPM Implementation Strategy
TPM Implementation StrategyTPM Implementation Strategy
TPM Implementation Strategy
 
Overall Equipment Effectiveness
Overall Equipment EffectivenessOverall Equipment Effectiveness
Overall Equipment Effectiveness
 
Autonomous Maintenance
Autonomous MaintenanceAutonomous Maintenance
Autonomous Maintenance
 
VSM – Current & Future
VSM – Current & FutureVSM – Current & Future
VSM – Current & Future
 
Service / Product Innovation
Service / Product InnovationService / Product Innovation
Service / Product Innovation
 

Recently uploaded

Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneurramya202104
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxBonano Insurance
 
The 10 Most Influential Women Making Difference In 2024.pdf
The 10 Most Influential Women Making Difference In 2024.pdfThe 10 Most Influential Women Making Difference In 2024.pdf
The 10 Most Influential Women Making Difference In 2024.pdfInsightsSuccess4
 
Shopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelShopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelBhaviniSharma12
 
Record of Module Forensic photography in
Record of Module Forensic photography inRecord of Module Forensic photography in
Record of Module Forensic photography inalexademileighpacal
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxShainaMaheshwari1
 
Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabiaopstechsanjanasingh
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loansujat8807
 
The Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningThe Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningNaval Singh
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model InnovationMichal Hron
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesLPI ONG
 
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...BilalAhmed717
 
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckHajeJanKamps
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi Tube
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfLouis Malaybalay
 
EPC Contractors aspects Presentation.pdf
EPC Contractors  aspects Presentation.pdfEPC Contractors  aspects Presentation.pdf
EPC Contractors aspects Presentation.pdfGiuseppe Tommasone
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianCDEEPANVITA
 
Unleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan BusinessUnleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan Businesstompeter3736
 

Recently uploaded (20)

Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneur
 
WAM Corporate Presentation Mar 12 2024.pdf
WAM Corporate Presentation Mar 12 2024.pdfWAM Corporate Presentation Mar 12 2024.pdf
WAM Corporate Presentation Mar 12 2024.pdf
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptx
 
The 10 Most Influential Women Making Difference In 2024.pdf
The 10 Most Influential Women Making Difference In 2024.pdfThe 10 Most Influential Women Making Difference In 2024.pdf
The 10 Most Influential Women Making Difference In 2024.pdf
 
Shopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelShopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business Model
 
Record of Module Forensic photography in
Record of Module Forensic photography inRecord of Module Forensic photography in
Record of Module Forensic photography in
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
 
WAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdfWAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdf
 
Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabia
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loan
 
The Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningThe Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda Learning
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model Innovation
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de Operaciones
 
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
 
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
 
EPC Contractors aspects Presentation.pdf
EPC Contractors  aspects Presentation.pdfEPC Contractors  aspects Presentation.pdf
EPC Contractors aspects Presentation.pdf
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya Cherian
 
Unleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan BusinessUnleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan Business
 

Optimise & Integrate WCM & SCM

  • 1. Optimise & Integrate - WCM & SCM Managing Assets & Liquidity in Supply Chain Anand Subramaniam
  • 2.
  • 3.
  • 6. SCM - Drivers Improve customer service Improve order management Corporate growth Improve asset use Improve demand planning Improve warehouse/distribution activities Accelerate “cash to cash” cycle Supplier/supply base management Strengthen partnerships Regulatory compliance
  • 7. SCM - Material & Financial Flow Receive Goods and Invoice Send Payment Reconcile and Account Send Purchase Order Credit Application Negotiate Sales Terms Select Supplier and Goods Source Suppliers Supply Chain of the Buyer Receive Order Produce Goods Manage Inventory Distribute Goods Material Supply Chain Supply Chain of the Seller Material Supply Chain Evaluate Credit Reconcile Settle & Pay Issue Invoice Forecast Cash Finance Working Capital Resolve Disputes Financial Supply Chain
  • 8. SCM Metrics - Impact on P&L and B/s
  • 9.
  • 10.
  • 12.
  • 13. Working Capital Management (WCM) WCM can deliver significant business benefits in a relatively short period of time, where idle capital can be effectively & efficiently utilised Inventory Management Debtors Management Creditors Management Working Capital Management Consolidate supplier base to maximise purchasing and payment efficiency Unlock cash tied in stocks, reduce SKU’s, review product profitability, demand forecasting Improve Debtors & Credit Control
  • 14. WC - Current Challenges Current Challenges Customers taking longer to pay Inability to balance working capital and to convert stock or debtors into cash Costs rising Profit margins under pressure Doubts about ability to make serious capital repayments on loans within the next six or seven months Turnover falling
  • 16. Working Capital Strategies Financial Performance Profitability Growth Capital Utlisation Cost of Goods Sold Selling Price Fixed Capital Utilisation Working Capital Utilisation Days Inventory Days Sales Outstanding Days Purchase Outstanding
  • 18. WCM – Review existing policies, procedures, processes etc
  • 19.
  • 20.
  • 21. Revisit WC- Policies Higher Profits / Higher Risk Lower Profits / Lower Risk Trade-off Between Profitability and Risk Shorter than Industry Average Longer than Industry Average Operating and Cash Cycles With Short-term Debt With Long-term Debt and Equity How Current Assets are Financed Lower than Industry Average Higher than Industry Average Current Ratio Low High Levels of Current Assets Aggressive Conservative Working Capital Policy
  • 23. WCM – Forecast & Optimisation
  • 24.
  • 25.
  • 26. Your Firm’s WC – Requirement Amount Current Assets (i) Stock of Raw Materials ( for ….month’s consumption) ----- (ii)Work-in-progress (for…months) (a) Raw Materials ----- (b) Direct Labour ----- (c) Overheads ----- (iii) Stock of Finished Goods ( for …month’s sales) (a) Raw Materials ----- (b) Direct Labour ----- (c) Overheads ----- (iv) Sundry Debtors ( for …month’s sales) (a) Raw Materials ----- (b) Direct Labour ----- (c) Overheads ----- (v) Payments in Advance (if any) ----- (iv) Balance of Cash for daily expenses ----- (vii)Any other item ----- Less : Current Liabilities (i) Creditors (For….. Month’s Purchases) ----- (ii) Lag in payment of expenses ----- (iii) Any other ----- WORKING CAPITAL ( CA – CL ) Add : Provision / Margin for Contingencies ----- Net Working Capital Required XXX
  • 27.
  • 28. SCM & WCM – Integrated Framework
  • 29. SCM & WCM Framework Cash & Working Capital Mgmt. Supplier - Supply Chain Plan / Invest (Long-term Capital) Sell & Negotiate Supply Chain Risk Mgmt. Outbound Logistics Invoicing Collection Production (Production Financing) Buyer - Supply Chain Financing (e.g. lines of credit, term loans) Risk Management (e.g. insurance, bonding) Compliance Management (e.g. SOX, customs, security) Connectivity (e.g. technology platforms) Other Services (e.g. consulting, education, trade promotion) Plan / Invest (Long-term Capital) Source & Procure Supply Chain Risk Mgmt. Inbound Logistics Invoice Processing Payment Production (Production Financing)
  • 30. SCM & WCM – Metrics & Measures
  • 31. SC Performance – Return on Assets
  • 32. SCM Goals Unit Cost Reduction Time Reduction Waste Reduction Flexible Response SCM Goals
  • 33. Financial Benefits Improved Working Capital & Margins Improved Cash Flows Revenue Profit Growth Higher Return on Assets Financial Benefits
  • 34. Customer Benefits Improved Value Improved or New Product / Service Quality Improved Flexibility Improved Timelines Customer Benefits
  • 35. SCM Improvements Integrate People, Process & Systems Improved Decision Making Strategic Partner Relations Product / Service Innovation SCM Improve-ments
  • 36.
  • 38.
  • 39.
  • 40.