Net Working Capital

Target the levels of capital end to end

Capital defines enterprise value and is normally managed by Finance only. In your business, however, capital is created by a sequence of commercial, operational and product-related decisions made by everybody else than Finance. Our approach is to build a bridge across the entire value chain, targeting the levels of capital end to end from a strategic business perspective and in an easily understandable language.

We use a net working capital approach to challenge our operating model from commercial, manufacturing and financial perspectives. By doing so, it is our experience that we can give a qualified answer to the question: What is the right amount of capital needed to efficiently run our business?

Using this framework will enable you to calculate optimal inventory levels and create a business foundation for managing where and how much to stock to manage:

• Delivery risk mitigation and service levels
• Stock policies and inventory management
• Product portfolio assessment
• Management, governance and KPI models

On top of this, you get a new set of metrics to manage decisions across functions in the organisation to find the optimal market contribution.