stocks of finished
Why is there a need for an effective credit policy?
Due to the high level of competition in the food market, the situation is such that in order to increase the attractiveness of its products, enterprises are forced to lend to wholesale-level operators, and those, in turn, retail stores. As a result, a significant part of the company’s current assets is always concentrated in accounts receivable for works, goods and services.
Enterprises have to increase accounts receivable in order to achieve their economic goals, which can be expressed using an absolute financial indicator – “Net profit” and a relative indicator – ROCE (return on capital employed – profitability of working capital). Both indicators characterize the efficiency of the enterprise, which is expressed in the fact that the organization “does what is needed in a proper way”. Continue reading
Biblical wisdom teaches: “There is no prophet in his own country.” Attached to the business, this phrase takes on a special meaning. Company employees are almost always critical of changes coming from within.
There are common situations when management attempts to change the existing state of affairs at an enterprise stumble upon a reinforced concrete barrier of rejection, worsen the psychological climate in the collective and destroy the corporate spirit.
Another reason why independent attempts to improve the structure of a business are failing is the elementary lack of necessary knowledge and skills of full-time employees.
In such a situation, the invitation of third-party specialists seems to be the most reasonable and expedient way to solve the problem. Experienced consultants invited from the outside take on the functions of impartial arbitrators who understand the company’s affairs in an unbiased, sober and competent manner. Continue reading
Effective inventory management is a significant tool for increasing net profit, positive net cash flow for an average and large enterprise producing tangible products. What happens if you think and do otherwise?
The history of this article is not thought out. My mobile and female voice rang at the other end of the line, saying that an enterprise producing important products for rescue services urgently needs to train one employee on the subject of stocks. The caller was called the HR Director of one of the industrial enterprises, considered one of the world leaders in her industry. Continue reading