lock search attention facebook home linkedin twittter

20 nov 2019

Raw material & processing companies: How your position in the value chain affects working capital

- and what to do about it.


In a series of four articles, we will discuss challenges connected to working capital and a company’s position in the value chain. We will also give advice on how to meet these challenges and look at data as well as examples from our client engagements. In this first article we are focusing on raw material and processing companies.

Good to know about raw material and processing companies
In Sweden, pure raw material companies are fairly few, and a large part of their operations are commonly related to processing. Thus, we have chosen to view Raw material extraction and processing as one part of the value chain.

The study shows that one sore spot are finished goods. In the article we look into the 4 following effective ways to meet the challenges in this business:

  1. Reviewing batch sizes and batch sequencing
  2. Meet lead time requirements by reviewing customer order decoupling points
  3. Integrate with customers
  4. Supply chain finance or not?

To read the whole study (5 pages) download the PDF.