Ways Out of the Working Capital Trap Empowering Self-Financing Growth Through Modern Supply Management

Especially in times of an economic boom following a crisis, companies have to deal with the phenomenon of the "working capital trap," which signifies a company's increasing need for financial liquidity in times of hindered access to debt capital, caused by the increasingly restrictive...

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Bibliographic Details
Main Authors: Hofmann, Erik, Maucher, Daniel (Author), Piesker, Sabrina (Author), Richter, Philipp (Author)
Format: eBook
Language:English
Published: Berlin, Heidelberg Springer Berlin Heidelberg 2011, 2011
Edition:1st ed. 2011
Series:Professional Supply Management
Subjects:
Online Access:
Collection: Springer eBooks 2005- - Collection details see MPG.ReNa
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245 0 0 |a Ways Out of the Working Capital Trap  |h Elektronische Ressource  |b Empowering Self-Financing Growth Through Modern Supply Management  |c by Erik Hofmann, Daniel Maucher, Sabrina Piesker, Philipp Richter 
250 |a 1st ed. 2011 
260 |a Berlin, Heidelberg  |b Springer Berlin Heidelberg  |c 2011, 2011 
300 |a X, 94 p  |b online resource 
505 0 |a Call for Action: From Financial and Economic Crisis to Working Capital Trap -- Determination of the Internal Financing Power of Corporate Growth via the Self-Financeable Growth Rate -- Strengthening Internal Financing Power using Cash-to-cash Cycle Optimization -- Measures for Strengthening Internal Financing Power from a Corporate Viewpoint -- Measures for Strengthening Internal Financing Power from a Supply Chain Viewpoint -- Case Study: Increasing Internal Financing Power of a Supplier in the Automotive Industry -- Measuring Procurement Contribution to Corporate Performance using the "Procurement Value Added" -- Conclusion -- Summary -- Outlook -- Literature 
653 |a Operations Management 
653 |a Production management 
653 |a Industrial organization 
653 |a Organization 
700 1 |a Maucher, Daniel  |e [author] 
700 1 |a Piesker, Sabrina  |e [author] 
700 1 |a Richter, Philipp  |e [author] 
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520 |a Especially in times of an economic boom following a crisis, companies have to deal with the phenomenon of the "working capital trap," which signifies a company's increasing need for financial liquidity in times of hindered access to debt capital, caused by the increasingly restrictive credit approval processes of financial institutions. As a consequence of cost savings, this situation is often reinforced by a low level of inventory. This book takes up the problem and shows ways of escaping the "trap" by identifying and strengthening in-house financing potential. First, different operating ratios will be introduced. These refer to the amount of capital committed to the flow of goods and to the amount of in-house financing possible. Subsequently, methods for consolidating in-house financing that are affected by procurement processes will be presented from the company's and the supply chain's perspective. From a company's perspective, the methods for consolidating the amount of in-house financing over the following topics: •             The Management of Payment Terms •             Inventory Management •             Product Group and Supplier Management From the supply chain's perspective, the following methods for extending the possible amount of in-house financing will be discussed: •             Finance-Oriented Supply Chain Sourcing •             Supply Chain-Oriented Supplier Financing •             Collaborative Cash-to-Cash Management •             Collaborative Cash Pooling and Netting •             Supply Chain Financing Platforms The conceptual models will be clarified using a practical example from the automobile industry. Finally, the "Procurement Value Added" (PVA©) approach will be presented, a concept that measures the contribution of procurement to the company's success