12 weeks running cash flow
- Prerequisite to a robust cash management is a disciplined cash flow forecasting, which enables visibility and a cash focus.
- Implement a strict 12 weeks cash flow forecast process, supported by adequate tools.
Working capital planning
- Suppliers unable to deliver critical components to manufacturers, delaying or halting the manufacturing process, companies need to make contingency plans for alternative supply as appropriate.
- A downturn in consumer demand leading to increased inventories that are more and more difficult to clear.
- Challenges in collecting receivables from cash strapped customers and difficulties in paying suppliers require companies to proactively manage these key stakeholders.