Working capital is one of the constituent parts of the property of the enterprise. The successful activity of an enterprise is determined by their efficiency of use and condition. It is possible to increase these parameters by accelerating the movement of working capital.
Instructions
Step 1
Analyze production inventories. It is possible to accelerate the turnover of working capital by reducing the intervals between deliveries, establishing progressive norms for the consumption of materials, raw materials and fuel, as well as reducing the material consumption of products.
Step 2
These operations can be implemented through the procurement of materials in smaller batches, the development and adherence to new optimal delivery schedules, acceleration and optimization of cargo transportation. Carry out the mechanization and automation of the production process, which, as a result, will improve the organization of the warehouse economy. Eliminate unnecessary and surplus stocks, as well as prevent the factors of their occurrence.
Step 3
Reduce lead times to speed up your working capital. This is realized by increasing the number of work shifts, introducing advanced technologies and techniques, reducing the idle time of parts and other work-in-progress operations. In addition, these operations will lead to a reduction in the unit cost.
Step 4
Change the situation with regard to finished goods in the warehouse to further reduce costs. Plan production on the basis of orders under the concluded contracts, observe the terms of production, reduce the size of the shipment batch. Leverage market research to boost product-to-market, which will also increase turnover.
Step 5
Analyze accounts receivable and take measures to reduce it. To accelerate the movement of working capital, it is possible to reduce the provided deferrals of payment, which, as a result, will speed up non-cash settlements and will allow the sale of products only to solvent counterparties.
