Ques:- A medical equipment manufacturer in the southeastern US has called you in because it feels its working capital requirements are much higher than those of its competitors. How will you help it solve its problem?
Asked In :-
Vinove Software & Services Pvt Ltd, Shipco IT, Aakit Technologies, Priya Softweb Solutions, LiteBreeze Infotech, Cybage Software, Radicle Software, Novalnet e-Solutions, SPARX IT SOLUTIONS, Fission Infotech,
Right Answer:
I would analyze the company's inventory management, accounts receivable, and accounts payable processes to identify inefficiencies. Then, I would recommend strategies to optimize inventory levels, improve collection times on receivables, and negotiate better payment terms with suppliers to reduce working capital requirements. Additionally, I would benchmark these metrics against competitors to identify specific areas for improvement.
I would analyze the company's inventory management, accounts receivable, and accounts payable processes to identify inefficiencies. Then, I would recommend strategies to optimize inventory levels, improve collection times on receivables, and negotiate better payment terms with suppliers to reduce working capital requirements. Additionally, I would benchmark these metrics against competitors to identify specific areas for improvement.
