Improving cash flow is top of mind for everyone these days. But for Kraft Foods, it is also a corporate mandate. The food and beverage giant sharpened its focus on cash when its chief financial officer promised Wall Street that the company would improve its cash flow by more than $1 billion over three years.
Presenting at CSCMP's Annual Global Conference, Philippe Lambotte, senior vice president of global customer service & logistics, outlined how the $24 billion company encourage its business units to start freeing up cash now. For Kraft the answer came in two parts: provide people with an incentive and provide them with tools.
Just as every manager has an incentive linked to revenue, they now also have incentives linked to cash flow.
Kraft also provided its business units with tools to accomplish this goal. The following are just a few: