I'm taking a break from our cash velocity discussion today to make you aware of my second podcast. In this podcast Jeff "Ski" Kinsey probes with some interesting questions regarding mafia offers and our Mafia Offer Boot Camp. The newest podcast is available here:...
Reduce Material On-Hand to Reduce Cash-to-Cash Cycle Time To reduce the number of days we have material on hand, be can implement Goldratt's Theory of Constraints Demand Pull[1] solution. We know from Demand Pull that historically we compensated for not having a good...
Cash velocity is a component of the wider topic of cash flow. Both cash flow and cash velocity are like good health. When you have it, you don’t really notice. But for many companies the time between when they have to pay their vendor and when they get paid is large...
Should I factor (sell) my receivables? I could use the cash, but the cost seems too high. This question is hard to answer without more information, so let’s look at an example: Let’s say it costs you $40 to make a product you typically sell for $100. If you could get...
I have been collecting Goldratt Theory of Constraints articles since 2004. I post all of them on my website. The articles include TOC implementation success stories, general knowledge articles, and instruction of the use of the various Theory of Constraints tools -...
If I am one of your best prospects, what would you say to convince me to do business with you? If you didn't write down your answers yesterday, do it now BEFORE you read on. Here is a list of the typical answers: § We provide great customer service § Our quality is...
It turns out that mafia offers are possible for the majority of companies. The reason that most companies don’t know that they have one or know what it is, is because they just don’t know how to develop them. If you read Dr Goldratt’s book It’s Not Luck, you read...
Developing a Mafia Offer is no easy task. It takes in-depth analysis, and to develop a mafia offer you need to consider 3 things. –Your capabilities (or what they could be) compared to the competition. –How your industries supplies product/services. –The impact your...
The best way to increase your profits is to do it in a way that is totally under your control. It should NOT depend on customers taking a price increase, or on vendors to reducing prices, or on the economy. You can increase your profits by uncovering capacity (or...
