Cost Reduction and Cash Management

The Challenge

Competing effectively in an increasingly challenging economic environment.
Competition eroding revenues.
Technology fundamentally changing customer expectations.
Deregulation leading to long-term loss of market share.
To tightly manage all company assets effectively, including cash.
To drive down the cost of procurement.

The Problem

The challenge of cost reduction has been brought to the fore for many reasons ranging from the economic environment to pressures peculiar to particular industries.

Companies must achieve an economic, efficient and secure supply of raw materials, overhead services and ancillary purchases, whilst reducing cost, without detriment to the business or supply chain.

Cash flow management is vital to the health of all business, and generally acknowledged as the most pressing concern in business.

The Solution

Supply chains are inherently asset intensive (your assets and supplier's assets). Laying down assets constrains flexibility and increases risk in an uncertain world. Textile Innovations Ltd recognises the need to manage in-bound and out-bound logistics to deliver a cost effective infrastructure that configures operations around core competencies and drives down logistics costs whilst delivering exemplary customer service.

Generally speaking, an effective cost reduction program will improve bottom line profit more than a corresponding increase in sales. Typically savings of 5% across all expenditure will have an immediate impact on profit of 16.7% (based on return on sales of 6%.)

At Textile Innovations Ltd we strive for a cost reduction program that will return the greatest value, not necessarily the lowest cost. In addition, we help develop policies and procedures to maximise your cash flow. We improve supply chain performance and reduce your unit cost through deployment of lean principles.

This service includes inventory reduction programmes, balancing operations, accounts receivable and payable analysis designed to improve cash flow and find hidden value, without the need to sell useful assets or shed valuable staff.

We develop metrics tailored specifically to your particular business and financial situation, making it easier to understand, monitor and control those items that are most critical to bottom line profit and improved cash flow.

If you have concerns with any aspect of your costs or cash management, or are simply seeking peace of mind, contact Textile Innovations Ltd today to arrange a health check.