“We're growing and cash keeps getting tighter.”
- Likely cause
- Inventory and payables are moving faster than the revenue report shows. The constraint is usually the cash conversion cycle, and it sits outside the P&L.
- Week one
- Map raw material to finished goods to cash, SKU by SKU, against the PO calendar.
- The fix
- Ben resets the buy plan and the payment terms, and puts cash on the same page as revenue in the weekly review.
- Keeps it fixed
- A stock watcher that flags a late PO or a thin SKU while there is still time to act.