"I now have access to product quality data on a daily basis that I used to have monthly. This helps us respond more quickly to issues."
The cash conversion cycle (CCC) is a powerful tool for assessing how well a company is managing working capital and managing the company overall. It not only highlights the drivers of working capital, but also sheds light on the dynamics of a supply chain. Successful initiatives in improving the elements of working capital include: Accounts Receivable, Accounts Payable and Inventory. These will directly influence a more competitive environment and position a company to better compete in the global economy.
Questions that are often asked are:
- What is the Days Sales Outstanding by company, by business unit, by period? These are just a few "report by's." You can analyze DSO many different ways.
- What is the Days Purchasing Outstanding by company, by business unit, by period? These are just a few "report by's." You can analyze DPO many different ways.
- What is the Days Inventory Outstanding by company, by business unit, by period? These are just a few "report by's." You can analyze DIO many different ways.
- What is the Inventory Turns by company, by business unit, by item class, by period? These are just a few "report by's." You can analyze Inventory Turns many different ways.
- What does my Open Receivables look like by customer, by period?
- What are my Credit Sales by period, by customer, by finished good, by business unit?
- What is the Cost of Goods Sold by period, by plant, by item category, by customer?
- What is my Inventory Value by period, by plant, by item category?
- What is my Open Payables by vendor by period by item by location?
- What is my Spend by period, by vendor by item?
Customers in the automotive industry are very keen to these metrics and understand their value. Missing a forecast in working capital requirements can cost a company millions of dollars.
Working capital performance is comprised of a complicated set of interactions within the corporate ecosystem that can be viewed through the lenses of Accounts Receivable, Accounts Payable and Inventory. Understanding these interactions and their performance drivers requires timely information. Jaros Analytics delivers this timely information.