1. Sleeping Cash
Find the cash trapped in inventory, WIP and finished goods
PPC Journey 2 of 18
The Smart Buyer
The lowest price is not the same as the lowest cost.
Buy the right material, in the right quantity, at the right time
Cash and material
What this journey is about
Purchase is the first place where cash gets committed. The moment material is bought, available cash becomes inventory.
A purchase can have a low price, a high discount and long credit, and still be a bad purchase if the material comes too early, in excess, of poor quality or late.
This journey moves the conversation from purchase price to purchase value: requirement, stock, open orders, lead time, consumption and cash impact, decided together.
Key idea
The best purchase is the right material, in the right quantity, at the right time, from the right source, with the right capital commitment.
Where we look in your plant
Episodes
8 episodes
Each episode follows one factory story, the business numbers behind it, and one action for Monday morning.
- EP 01The Smart Buyer Doesn't Buy Cheap
- EP 02Buy What You Need
- EP 03Right Material, Right Time
- EP 04The Purchase Order Is a Financial Commitment
- EP 05Your Supplier Is Part of Your Factory
- EP 06Manage Before the Delay
- EP 07One Truth Between Buyer & Supplier
- EP 08The Smart Buyer Builds the Supply Chain
Next step
Does this sound like your plant?
We measure where your plant stands today, agree the target with you and work alongside your team until it is reached. We charge on success fees.
Continue the series
Previous and next journey
3. From Material to Value
Keep material flowing until it becomes customer value
FAQ
Frequently asked questions
What is PPC Journey 2, The Smart Buyer, about?
Purchase is the first place where cash gets committed. The moment material is bought, available cash becomes inventory. A purchase can have a low price, a high discount and long credit, and still be a bad purchase if the material comes too early, in excess, of poor quality or late. This journey moves the conversation from purchase price to purchase value: requirement, stock, open orders, lead time, consumption and cash impact, decided together.
What is the key idea of The Smart Buyer?
The best purchase is the right material, in the right quantity, at the right time, from the right source, with the right capital commitment.
Which episodes are in The Smart Buyer?
The Smart Buyer has 8 episodes: The Smart Buyer Doesn't Buy Cheap, Buy What You Need, Right Material, Right Time, The Purchase Order Is a Financial Commitment, Your Supplier Is Part of Your Factory, Manage Before the Delay, One Truth Between Buyer & Supplier and The Smart Buyer Builds the Supply Chain.