Authors:
- Examines the "working capital trap" and shows ways of escaping it by identifying and strengthening in-house financing potential
- Volumes of "Advanced Purchasing & SCM" offer an overview on the latest research fields
- Professional guide for researchers and practitioners
- Includes supplementary material: sn.pub/extras
Part of the book series: Professional Supply Management (SUPPLY, volume 1)
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Table of contents (8 chapters)
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Front Matter
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Back Matter
About this book
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 and 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.
Authors and Affiliations
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, Chair of Logistics Management (LOG-HSG), University of St.Gallen, St. Gallen, Switzerland
Erik Hofmann
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Kerkhoff Competence Center of Supply Cha, Lehrstuhl für Logistikmanagement, Universität St. Gallen, St. Gallen, Switzerland
Daniel Maucher
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Kerkhoff Consulting GmbH, Düsseldorf, Germany
Sabrina Piesker, Philipp Richter
About the authors
Bibliographic Information
Book Title: Ways Out of the Working Capital Trap
Book Subtitle: Empowering Self-Financing Growth Through Modern Supply Management
Authors: Erik Hofmann, Daniel Maucher, Sabrina Piesker, Philipp Richter
Series Title: Professional Supply Management
DOI: https://doi.org/10.1007/978-3-642-17271-7
Publisher: Springer Berlin, Heidelberg
eBook Packages: Business and Economics, Business and Management (R0)
Copyright Information: Springer-Verlag Berlin Heidelberg 2011
Hardcover ISBN: 978-3-642-17270-0Published: 02 April 2011
Softcover ISBN: 978-3-642-26765-9Published: 29 May 2013
eBook ISBN: 978-3-642-17271-7Published: 01 April 2011
Series ISSN: 2192-0443
Series E-ISSN: 2192-0451
Edition Number: 1
Number of Pages: X, 94
Topics: Operations Management, Organization