Working Capital Management: Inventory Management (PowerPoint PPTX Slide Deck)

DESCRIPTION

Working Capital Management (WCM) refers to the administration of an organization's short-term assets and liabilities to ensure its ongoing operational efficiency and financial stability. Effective WCM is crucial for maintaining liquidity, optimizing cash flow, and ensuring the organization can meet its short-term obligations while investing in growth opportunities.

There are numerous benefits to effective WCM, including:

•  Enhanced liquidity and financial stability
•  Reduced operational costs
•  Improved profitability and ROI
•  Stronger supplier and customer relationships

Effective WCM requires a comprehensive Working Capital Management Strategy. This presentation introduces an approach to WCM Strategy based on 8 core pillars:

1. Short-term Cash Flow Management
2. Inventory Management
3. Demand Forecasting and Sales & Operations Planning (S&OP)
4. Asset Optimization
5. Accounts Receivable Management
6. Accounts Payable Management
7. Supplier Management
8. Working Capital Performance Management

This framework is focused on the second pillar, Inventory Management. Inventory Management involves maintaining optimal inventory levels to meet production and sales demands without tying up excessive capital or incurring storage costs.

This presentation breaks down a detailed 6-phase methodology to Inventory Management:

1. Data-Driven Inventory Analysis
2. Optimization Planning
3. Just-in-Time (JIT) Inventory Implementation
4. Effective Supplier Negotiations
5. Inventory Turnover Optimization
6. Continuous Monitoring and Improvement

This PPT presentation is an excerpt from a more in-depth presentation on Working Capital Management Strategy.

This deck on WCM Strategy also includes slides for you to use in your own business presentations.

Got a question about the product? Email us at flevypro@flevy.com. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Working Capital Management, Inventory Management PowerPoint Slides: Working Capital Management: Inventory Management PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting