Solution: Cost- & capital employed management
Current situation in the industry
Manufacturers and suppliers are undergoing a massive competitive pressure probably unprecedented in this form. The reasons for this are, among others the slowdown in the automotive market, especially in Europe and North America, an increasing competition from low-wage countries, global production overcapacity of the OEMs, rising raw material and energy prices, demand for environmentally friendly innovations and a tighter lending as a result of the banking crisis. This forces enterprises more than ever to sift through their value chains and all business functions for cost reduction potentials and optimization.
Efforts made so far were in improving the material and information flow. Lately the focus shifts increasingly to capital tied up in fixed assets and working capital, and thus the cash flow, the so-called financial supply chain. So far as proven valid business models are put to the test as the resulting resource requirements and fixed costs seem too high. The call for a comprehensive, holistic cost, capital binding and liquidity management of the entire supply chain is getting louder.
Typical projects (Examples):
- Reduce working capital by approximately 20% with a commercial vehicle manufacturer with suboptimal business processes in the development, procurement, production, sales and finance area
- Complete reorganization and business process improvement (turnaround) of a manufacturer of foundry equipment (achieving a positive "free cash flow" within a year, inter alia, by shortening the "cash-to-cash" cycle time, and by implementing a "design-to-cost" program )
- Creation of a restructuring and implementation approach to further growth financing of an automotive supplier (granting additional credit line of € 6 million by the banks)
- Implementation of a controlling and performance measurement system in the "Technical Services" area of a company of Metallurgy (Introduction of a comprehensive overhead reduction program based on "service level agreements")
With our comprehensive, interdisciplinary "phase management approach" (from the short analysis about the basic concept to responsible implementation management and coaching), we realize our customers potential for cost and working capital reduction and optimizing the control flow of cash across the entire value chain, possibly also by adapting the business model. Scientific studies have shown that, for example, potential areas of improvement lie in the interface between purchasing and finance department. Here considerable earnings and cash flow potential in terms of order dates, delivery dates, payment terms, the use of discounts or suppliers' credits and payment runs, can be identified!
a. Product management in the early design of revenue, variable manufacturing costs and fixed costs in particular situation ("flexibility"!) over the entire product life cycle and
b. Process management on an effective control of the success factors "time", "price / cost" and "quality" that result in a sustainable fostering of profitability and financial strength.
Through the use of effective controlling instruments and identifying the relevant cost drivers, the necessary control information to "keep on track" are permanently available to your company also in hard times. At the same time your credit-worthiness is improved by strengthening the self-financing ability to your credit lenders and investors.
ABTF can put together a powerful, practical experienced management team, which ensures proper decisions and the professional implementation of the necessary measures to increase efficiency in the entire value chain for different business cases e.g. of recessive situations or of growth phases. From strategic positioning through to the operational efficiency, we improve your competitive position and create sustainable, verifiable results.
Our goal is to create business value in the client company in a very short time. The result is that the fee expense paid to us flows back within one year (Pay back <1 year).
As a leading industry specialist for professional interim management "in line" and "projects" in the automotive industry you obtain effective, efficient and sustainable solutions with ABTF!
We implement and create added value!