WORKING CAPITAL tends to pose major challenges with steel businesses involved in manufacturing, fabrication and building. Many businesses require inventory and free cash to meet demanding customer requirements. In the quest to meet these requirements and expectations, working capital is over extended. This often results in cash ow pressure and pro t leakage. Investing in the right type and amount of inventory where possible; ensuring the range and scale works for your business will help reduce working capital. In addition ensuring cash is optimised and working for your business – valued by your customers with the right investments in people, processes, inventory and equipment.
The Steel Efficiency Review® process recommends operations and productions teams to make what the customer wants when they want it, as specified. WORKING CAPITAL when not managed effectively can cost steel businesses’ money, time and opportunities to win new work. These costs can amount to a considerable sum over time. With 1053 Steel Efficiency Review® consultations completed, we have found if you could reduce WORKING CAPITAL the savings would be straight back on your bottom line improving the profit in your business.
Our SER® consultants have recommended the following 3 key solutions to help reduce WORKING CAPITAL:
1. LAYOUT AND FLOW IMPROVEMENTS TO ELIMINATE BOTTLENECKS.
2. ABILITY TO SOURCE HIGH QUALITY RAW MATERIALS (SEMI-FINISHED).
3. OPTIMISATION OF FEED MATERIAL.
As a supplier of steel and aluminium products, we must continue to strive to find a better way with our customers. The Steel Efficiency Review® aims to provide recommendations to change and improve our customer’s business and at the same time our product and service offer. Download our Value Proposition Reports for our insights and learnings on businesses of all shapes and sizes across Australia. To register for your own FREE Steel Efficiency Review® click here.