Cash Flow Optimisation

Why do I need it?

Your inventory is simply a non-liquid asset that you can turn into cash - at some point in the future. But if you need a better cashflow, then your inventory could be reduced down to keep some of your cash liquid to be better invested elsewhere. But, there are also costs to keeping a low inventory, as much as a high one. You don’t want to reduce your stock too low that it starts costing you more than the cash you’re putting back into the business.

I have developed a new model, which I have called the “COBQ”, or “Cash-Optimal Batch Quantity” which can be used to assist companies looking to improve their cashflow, by optimally reducing the amount of inventory or stock that you keep by managing the batch size of your production, or the order size of your ordering. If you’ve heard of the EBQ or EOQ, this is the next upgrade.

If your company uses batch production or batch ordering, and have associated costs with those, I can use my new model to help you leverage as much cash out of that process. It is entirely possible that this model is not right for your business. For some, it won’t be. But I’m happy to have a discussion with you and work out if it is the right solution for you. I want to help you improve and grow your business.

To begin discussing with me whether this is right for you, please click the button below to get in touch: