Strategic management of trade working capital - demand chain

Overview:

Demand chain is the new definition of receivables under traditional trade working capital. The traditional approach to financing trade receivables included factoring recourse/non recourse, invoice discounting, forfaiting, receivables scrutinisation and vendor finance.

The new approach includes:

  • straight through reconciliation with invoice discounting applied
  • white label via credit control outsourcing
  • which debtors to enter tiers 1, 2 and 3
  • when to announce that the initiative is being implemented
  • results and outcomes expected regarding savings in efficiency in cash and ROI.

Learning Outcomes:

On completion of this course, participants will have a greater understanding of:

  • The new way of understanding the demand (debtor) side of working capital
  • Why the new format is 'fit for purpose' in the new cash environment organisations now encounter
  • Why the former calculation of 'Days Sales Outstanding' (DSO) is at best a 'general' guide
  • Gaining knowledge from the case studies of how to apply the new methodology to enable you to become more effective
  • Instigating a strategy that could make working capital and therefore cash more efficient.

Authored by: John Mardle

An independent educationalist and author on working capital, John has recently written many articles for leading publications as well as facilitating and being a panellist at major events involving the Bank of England, Lloyds Banking Group, UKTI, major technology providers and VC/PE organisations. His recent work has involved ITV, DHL, Sprint Convergence, Astrium Satellites and numerous SMEs, banks, financial institutions and investment houses. John has held senior executive positions in blue chip companies such as Bombardier, Parsons, ABB, Alstom and Wimpey Taylor where he delivered worldwide programmes of strategic cash importance.

CPD Points: 1.5

CPD Duration (hours): 1.5

Access: 12 months from purchase date

Price (excludes VAT): £50.00