We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Kraft exec outlines tools for increasing cash flow
post-conference report

Kraft exec outlines tools for increasing cash flow

October 1, 2009
Susan K. Lacefield
No Comments

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:

  • Monitor the number of stock-keeping units (SKUs) that you have. The fewer you have, the less inventory that you need to carry (and therefore the less cash tied up in inventory).
  • Create a fixed production schedule where every week you produce the same sequence of SKUs for the same length of time. And then produce only as much as you exactly need and stop—even if this means that workers do not have something to do while you switch over to producing the next product. This results in a more regulated flow of finished goods and reduced raw material and packaging costs.
  • Evaluate each SKU's revenue and volatility. Phase out those SKUs that have low revenue and high volatility. While this means that you will be giving up some revenue, it will be outweighed by the increase in cash.
  • Consider lowering service level. Stepping down the service level for some of your product lines (say to 98 percent) will allow you to operate with less inventory coverage.
Supply Chain Services Business Management & Finance
  • Related Articles

    going with the (cash) flow

    Survey: Companies focus on cash flow in wake of Covid-19

    Increasing the flow

Susanlacefield
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.

Recent Articles by Susan Lacefield

Six signs of the warehouse e-volution

Where it’s at

The state of the retail supply chain: The more things change …

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Biden names dozens of senior leaders to DOT, including FMCSA and FRA

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Thriving in the long haul: interview with Colin Yankee

Now Playing on DCV-TV

Sick agv demo thumbnail

Optimize Load Handling Tasks with Industrial Mobile Robots

DCV-TV 4: Viewer Contributed
Intelligent sensors detect the presence of goods, check for empty shelves, or the correct alignment on the mobile platform towards the freight. The solutions range from simple detection sensors, thorough measuring devices, and 2D LiDAR sensors.

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing