Betty Fan, senior consultant at Element Consulting Group in the USA, an advisor of shipping companies and manufacturers, in an article in 'the corporate treasurer', recommends an integrated approach from all business units examining how cash can be saved in each of their business processes, including:
- don't allow your customs declaration notes to pile up, the fines can add up to a huge sum
- examine receivable and payment cycles across departments
- offer incentives to good business partners
- reduce lead time by combining the functions of inventory and warehousing units with the procurement department
- reverse logistics: To reduce the amount of products rejected by the quality control department and explore ways to refurbish rejected merchandise
- combine bills for better negotiation
- ensure data consistency and correct information is entered into an LC. Clean LC can reduce the discrepancy fees levied by the banks
- prevent inventories from piling up: consider using the Internet to sell left over products.
Read more in the full article - recommended - here.
Like this item? Get our Weekly Update newsletter. Subscribe today