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SETPOINT Group | Lean Working Capital | gift that keeps on giving
SETPOINT Group | Textbox

Our own methodology - what we call LEAN WORKING CAPITAL and our SETPOINT approach

Lean Working Capital is a holistic end-customer centric approach, helping our clients achieving or improving their company’s Working Capital SETPOINT

SETPOINT Group | SETPOINT compass

What is LEAN WORKING CAPITAL and a SETPOINT?

Lean Working Capital is a holistic end-customer centric approach, focused on balancing supply chain risk and right-sizing buffers – while minimizing lead-times and waste

A company’s optimal working capital level – its SETPOINT – reflects the amount of working capital required to sustain its current operations

A SETPOINT is the steady state in which all processes operate in harmony, providing perfect value for the end-customer

Read more on LEAN WORKING CAPITAL here
Explain like I'm 5 here

The origin of our approach - 5 common Working Capital misconceptions

SETPOINT Advisory’s Lean Working Capital concept was developed in response to a set of common Working Capital Management Misconceptions we have encountered over the years

Misconception 1 - YOU MUST CHOOSE BETWEEN WORKING CAPITAL AND PROFITABILITY

Most organizations don’t realize or overlook the substantial impact a sustained improvement in working capital has on both top-line and cost.

SETPOINT Group | 3 basics of lean working capital

The 3 basics of LEAN WORKING CAPITAL

Keep your balance sheet as lean as your P/L – Focus on cash, not instead of sales and profitability, but additionally
 

Secure a balanced Cash Conversion Cycle – Companies’ ability to convert profit into cash can mean the difference between survival and bankruptcy in times of crisis, and a decisive competitive advantage when times are good

Maintain a holistic view and balance stakeholder perspectives across the organization – a company’s performance is never better than the sum of its functions

The gift that keeps on giving!

LEAN WORKING CAPITAL reduce the cost of GROWTH

It releases CASH to fund innovation & growth, reduce debt or pay dividends

It improves EBITDA through removal of Supply Chain Biases and other inefficiencies

It develops and implements a cash- and continuous improvement culture

It improves end-to-end process transparency, understanding and control

It is a more susceptible approach than pure cost cutting, requiring less energy and resources to implement 

SETPOINT Group | lean working capital