APPROACH
We Transform Purchasing and Supply Chain Organizations.
APPROACH 1: Traditional Working Capital Approach
After reviewing the 3 working capital processes (DSO, DIO, DPO) it has become apparent that the true value proposition is an ‘end to end value creation chain’
- Business to Cash – DSO – (AR)
- Forecast to Fulfill – DIO – (Inventory Management)
- Source to Settle – DPO – (AP)
A taxonomy mapping the business operating model
Three main processes related to the Working Capital
APPROACH 2: Full Value Creation Working Capital Approach
Big Fish model is focused on a holistic end to end approach to maximize working capital &EBITDA.
Purchasing & External Resource Management
Sustainable Supply Chain Management
Customer Value Creation & Service
Operational Excellence
In so-called old economies, companies buy on average ¾ of their revenue—behind this Purchasing volume you find (human) resources at the supplier's level, and this People community has substantial expertise of all sorts. In other words, it means that on average ¾ of the resources, and by consequence ¾ of the expertise of a company, are located outside of the borders of the said company.
The role of People in Purchasing (Extended Resource Management) and in the Supply Chain (Value Network Management) is to:
- Identify the relevant competences anywhere in the global community and build adequate relations to ensure that the people are willing and able to work together on specific projects.
- Provide and constantly adapt simple, easy-to-use and highly flexible tools and infrastructure to allow all relevant actors of the Value Chain to exchange information and physical elements efficiently.
Globally, both roles focus on connecting all actors (internal and internal) of the ecosystem, so that the various project-oriented teams can use a maximum of skills in a minimum of time to respond to a client or market need.
As one of the core elements of future competitive advantage is the “time to market”, our ability to identify and to react to any given need in weeks and months (instead of years) is of paramount importance. The main worry of businesses will be to mobilize the right skills, in a record time, to be able to develop markets and solutions, to produce and deliver products and services before competition picks up the opportunity. It is therefore not only coherent but absolutely necessary to use all or most of our external expertise in close connection with our internal know how! Indeed, who would want to drive a race with a car using only 25% of his engine power?
A holistic end-to-end model to maximize potential