Strategic Actions for Managing Cash Flow Challenges PPT
This PPT slide, part of the 33-slide Cash Flow and Cost Reduction Guide PowerPoint presentation, outlines key activities to address a cash flow crisis, emphasizing a structured approach to managing financial challenges. The first activity focuses on managing supply chain risk. It highlights the importance of understanding whether customers can fulfill their payment obligations, especially during turbulent times. Sourcing letters of credit is suggested as a practical measure to mitigate these risks.
Next, the slide discusses assessing organizational financing options. It encourages active engagement with financing partners and stresses the need for scenario planning to gauge cash requirements. A cautionary note is included about the implications of taking on business debt, advising a thorough understanding of interest rates to avoid deferring issues rather than resolving them.
The third activity hones in on the cash conversion cycle. It points out that while profit is a significant metric, the immediate focus should be on effectively managing the working capital cycle during unusual business conditions. Coordination of receivables, payables, and inventory investment is recommended to prevent unnecessary cash ties in inventory.
Finally, the slide prompts organizations to reconsider their inventory management strategies. It raises a critical question about whether cash flow constraints are being driven by customer service limitations or operational capabilities. A recommendation is made to evaluate current inventory management practices to ensure they align with the organization's financial health in the present environment.
This slide serves as a practical guide for executives looking to navigate cash flow challenges, providing actionable steps that can lead to improved financial resilience.
This slide is part of the Cash Flow and Cost Reduction Guide PowerPoint presentation.
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Cost Reduction Assessment Cash Flow Management Business Resilience Customer Service Inventory Management Supply Chain Scenario Planning Cost Reduction Cash Conversion Cycle
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