Working Capital

 

Enhanced and accelerated performance means financial flexibility

A lack of transparency and standards are often the reason for excessive stocks, increased non-sellers, high levels of receivables, and / or the lack of utilization of payment targets in companies. These phenomena are an unnecessary burden on a company's cash flow.

In this regard, we as Ayming rely in particular on the following three elements: 

Days of Sales OutstandingDays of Payables Outstanding
Days of Inventory Outstanding

 

Tailored optimization to enhance liquidity 

Available liquidity and thus financial flexibility are fundamental parameters for a company. Ayming helps you optimize your working capital by aligning the central control elements. The result is a decisive contribution to your company's profitability.

Ayming helps you improve your liquidity situation by optimizing the working capital cycle:

Cash Flow Cycle

 

This enables you to: 

  • Raise liquidity reserves for investments
  • Reduce liquidity fluctuation through forward-looking and proactive debtor and vendor management
  • Increase financial flexibility and thus improve your own market position
  • Reduce inventory through appropriate management systems and avoid non-sellers
  • Reduce process cost through standardized payment targets and automated payment and dunning processes on 
  • Lower bridge financing requirements up to 15% by harmonizing the capital-binding factors

 

 

Case study: Optimizing the liquidity of an Tier 1 supplier in the automotive industry

SITUATION

  • Leading TIER 1 design engineer and producer in the automotive sector
  • Sites in 7 countries
  • Historically grown structure of suppliers
  • High degree of specifications and product diversity

CHALLENGES

  • Deficiencies in supply chain coordination lead to high inventories
  • High number of items with low lot size
  • High number of invoices with different payment terms

SUCCESS FACTORS

  • Identification of "non-sellers" and adjustment of the minimum number of pieces
  • Consolidation of suppliers and the use of suitable logistics systems (JIT / JIS) in order to reduce overall inventory levels
  • Negotiation of standardized payment terms with top suppliers in order to instrumentalize payment targets
Result Case Study: 17% improvement of working capital