You get what you measure!
We all focus on productivity and probably even have Lean / 6 sigma campaigns to remove waste and improve operating profit.
Now is a good time to focus on cash, and the causes for cash being wrapped up in our manufacturing businesses.
Start with a Cash Dashboard for your business.
Cash is King, and we need to be in control of all aspects of our manufacturing business that drain cash.
Government loans have been great. But they will soon disappear. It is up to us, as manufacturers, to balance our business to meet the new demands of our customers, and operate with the least cash that is practicable.
Previously we have looked at who makes the decisions about Cash in our business, and we realise that often they are devolved decisions, maybe without the context of the impact on the whole business.
A Cash Dashboard will easily show you and your teams the impact of cash and where it is in your business. Targets can then be set, and action plans developed, to minimise the Cash needed to run the businesses effectively, and maintain or improve customer service.
The impacts of a cash shortage are obvious; the need for expensive loans, inability to pay for parts needed, wages, management time wrapped up in chasing cash and parts and answering angry customers. But worst of all, not being able to expand and take advantage as markets re-open.
IngPro Ltd are manufacturing specialists. We are currently very focussed on Cash. It is the key issue facing manufacturers now.
We will help you create a Cash Dashboard, understand your Cash Conversion Cycle, then start to tackle the biggest issues in your working capital and manufacturing model that are tying up cash.
See https://www.ingpro.co.uk/services/cash-management and contact us now.