How to give your business back the cash hidden in your inventories

You can reduce your operating working capital requirement by 50% with Nexans Smart Inventory Management

These are turbulent times. The economic impact of the Covid-19 crisis is affecting all industries, from utilities and telecom network operators to industrial OEMs in transport, energy, resources and industrial markets, as well as infrastructure and construction.

Lockdown measures have led to an unprecedented contraction of economic activity. The health crisis is now a revenue crisis. But companies must prepare to face an even bigger threat: the liquidity crisis.

No one knows exactly how the situation will unfold. But it is clear that companies that establish disciplined cash management will emerge from the crisis more resilient than before. These companies will be in a position to seize opportunities when the recovery comes.

While discipline is vital, innovative solutions can help industrial companies to optimise their working capital requirement (WCR).
 

Inventory management innovation from Nexans

Inventories can tie up a huge amount of cash. It’s also complex to manage. That is why Nexans has developed Smart Inventory Management (SIM). Our solution allows you to monitor and manage your cable stocks easily in real time – and reduce the operating WCR associated with inventories by an average of 50%.

The solution combines RFID (radio-frequency identification), demand driven replenishment methodologies and a cloud-hosted platform to provide 24/7 access to physical stocks all along the supply chain. It tracks the history of stock movements and triggers alerts if there is the risk of a product shortage or overstock. Meanwhile, automatic stock replenishments and faster physical inventory counts transform stock management and boost performance.

Smart Inventory Management creates a seamless and transparent supply chain between Nexans factories and cable end-consumers, including distributors, installers, and their subcontractors.

The benefits are tangible. Nexans customers using SIM have cable supply chains that are leaner, more agile and more reliable. They are also able to react faster to fluctuating demand while reducing their working capital requirement.

Jack Welch once said: “Cash is king. Get every drop of cash you can get and hold on to it.” Today, these words are truer than ever. Smart Inventory Management helps you to hold on to more of your cash so you can be ready for the opportunities that lie ahead.

Watch Nexans Smart Inventory Management video