OPTIMISATION OF PERFORMANCE
The creation or defence of corporate values is the result of continuous improvement of the ratios generally used for evaluations. On the one hand, these ratios measure structural and future operating profitability, and on the other the structural financial requirements, both of which are necessary to run the company
In most companies the launching of a coordinated project, aimed at the “ABC” analysis of costs and possible actions to be taken to contain them, brings significant savings by itself. The determination of consultants and a proactive approach to collecting the suggestions that come from the functions concerned makes projects very profitable.
WORKING CAPITAL OPTIMISATION
A similar argument can be made for projects aimed at containing the absorption of financial resources as much as possible. However, the simple policies of postponing payments to suppliers or reducing stocks and the pressure of debtors (customers) needs to be carried out after a detailed analysis of strategic partners and the company’s trade and product policies in relation to the range of products and minimum stock levels.
Possible efficiency gains can be achieved by streamlining back office processes and their procedures, trying to identify, where possible, simple solutions to reduce process times or the resources required to perform them.