Working Capital Management in Animal Food Industry

Working capital management in food industry

We’ve worked on a number of Working Capital Improvement and Management Projects over the last 15 years – one example of a working capital management in animal food industry project we can share involved us working with a global company  that resulted in €110m working capital released in 9 months.

Working Capital

Company – Global Animal Feed And Pet Food Manufacture

Project Description – Working Capital Project

Location – Global

Working Capital Issues 

  • Operational Working Capital of €200m (10% of sales)
  • Highly competitive seasonal market, with significant over capacity

Implementation

  • 5 Internal Consultants (ICs) trained
  • 4 Inventory Specialists (ISs) trained
  • Rollout started June 09 with ICs and ISs implementing the change

Critical Success Factors

  • Strong committed Driving Team – sense of urgency and high priority
  • Good Internal Consultants
  • Stick to the formula

Result

€110m working capital released in 9 months