Working Capital
| Clients: | Vaillant Groups |
| Url Link: | vaillant.co.uk |
| Date: | May 18, 2021 |
| Status: | COMPLETE |
Operating Working Capital (OWC) Optimization
Supply markets are impacted by:
- Material shortages and increased lead times
- Long order fixations and lack of flexibility
- Increased raw material prices
Customer markets are influenced by:
- Strong demand changes due to short-term decisions of governmental subsidies
- Deviating market trends with short term fluctuations
- Unsatisfying forecast accuracy
Linton Approach
Linton Products leveraged their expertise in wholesale sourcing and procurement to optimize the supply chain efficiency of a major UK retailer. Collaborating closely with the client, our team executed three key workstreams to deliver measurable results.
The first workstream focused on reducing inventory costs by conducting a detailed as-is analysis of inventory levels and benchmarking key performance metrics (e.g., inventory turnover, payment terms, and order cycles). We set ambitious yet achievable targets for sustainable inventory reduction and outlined short- and long-term strategies to meet these goals. The second workstream aimed to enhance the procurement planning process by assessing the current process’s maturity, identifying inefficiencies, and implementing tailored optimization measures. The third workstream concentrated on establishing a robust reporting and management system, incorporating clear KPIs and defined responsibilities to ensure ongoing success.
After developing these improvement strategies, Linton Products worked hand in hand with the client’s cross-functional teams to implement solutions, achieve quick wins, and launch flagship initiatives that drove lasting impact.
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