UAE businesses can go with new methods of cashflow

Key takeaways: 

• Positive cash flow control can help significantly in this high-rate environment.
• Businesses must stick with something other than tested and trusted methods to get a grip on cash flow. These days, there are more alternatives.

With cash flow management concerning the long-term economic health of any organisation, it must be treated as a notable priority. 

However, of the extent of your organisation, optimising your procurement methods will deliver you better odds at invariably reaching positive cash flow levels.

Managing inventory

Extra inventory will negatively affect cash flow management, leave your association with out-of-season or expired goods, and result in significant waste, excessive storage, and insurance charges. However, inadequate stock can lead to missed sales and dissatisfied consumers who look elsewhere.

Choosing suppliers

While it’s attractive to pick suppliers who offer the lowest cost, it is crucial to avoid compromising product quality or other services associated with them. 

This comprises delivery time, as waiting too long to get the stock without them being a factor in your planning will even negatively impact your cash flow.

Be careful of minimum and maximum order portions; these may initially deliver significant savings but will usually need a more substantial cash outlay and may leave you in danger of having too many goods in your inventory.

Keep a healthy working relationship with your suppliers and constantly watch their performance. Healthy and trustful supplier relationships are crucial for flexible payment terms, uniform quality, and on-time delivery.

Data Analytics and KPIs

Analytics will allow you to compare budgets with spending in real-time, pick consolidation options in your supply chain, and reach more planned decision-making to arrange short and long-term expenditures.

It will even allow you to ensure teams follow internal procedures.