Synopses & Reviews
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: •
Synopsis
This book shows how to escape the working capital trap by improving in-house financing potential. Covers different operating ratios, and views in-house financing from company and supply chain perspectives. Also presents the "Procurement Value Added" concept.
About the Author
The authors of this series are researchers of the University of St.Gallen, scientists of other leading international research centers with the focus on procurement and supply chain management, consultants of Kerkhoff Consulting and practitioners. As a result of the frequent formation of mixed teams, consisting of authors with theoretical and practical background, a close link between these disciplines occurs.
Table of Contents
Call for Action: From Financial and Economic Crisis to Working Capital Trap.- Determination of the Internal Financing Power of Corporate Growth via the Self-Financeable Growth Rate.- Strengthening Internal Financing Power using Cash-to-cash Cycle Optimization.- Measures for Strengthening Internal Financing Power from a Corporate Viewpoint.- Measures for Strengthening Internal Financing Power from a Supply Chain Viewpoint.- Case Study: Increasing Internal Financing Power of a Supplier in the Automotive Industry.- Measuring Procurement Contribution to Corporate Performance using the "Procurement Value Added".- Conclusion.- Summary.- Outlook.- Literature.