What we do

SUPPLY CHAIN FINANCE

What we do

Working capital management

Keeping order in stocks and having solid processes for materials management are often low prioritized areas at many companies. It´s left to IT-systems and low skilled “executors” rather than analytical planners to take business critical decisions. However, the right focus on materials management is among the most powerful and fastest way to reach improvements in working capital utilization, service levels towards customers and resource utilization in organizations which leads to increased profit and strengthened competitiveness.

Capital productivity can be measured as the relation between inventory and turnover and looking into the development in Swedish companies from year 2000 shows that almost nothing has happened! Even if working capital management is a main topic in many board rooms the trend of working capital productivity in Swedish industry is slightly declining.

The graph shows development of inventory days over the years 2000-2017 for Swedish Manufacturing and Trading companies (source SCB).

During the same period billions have been invested in projects and advanced IT-systems to support companies in managing goods flow and inventories and as seen above, without success. Why? What does it take to be successful? Of course, we need data power but more important a clear vision of how to reach the target, how do we motivate the organization and how can we simplify the conditions that have big impact on materials management?

MYSIGMA has solid experience and helps companies to effectively undertake working capital improvement programs. To achieve sustainable results, we take an end-to-end view on the value chain while explicitly taking cross-functional and cross-company interdependencies into account. Our special attention is linking operational and financial performance together. Thereby, we can address the growing need to introduce a common ground between the CFO and COO to drive integrated business planning and further improvements. These efforts are supported by our proven working capital toolbox that builds upon the most innovative approaches in working capital management.

For more information, contact: