In Nigeria, manufacturing leaders understand the challenge of slow cash flow. What many overlook is the untapped potential within their own warehouses. Working capital is the lifeblood of operations, fueling procurement, production, and payroll. Yet, numerous factories unknowingly tie up millions in overstocked raw materials, slow-moving finished goods, and inefficient ordering practices.
Consider this: If a plant holds ₦800 million in inventory and 30% turns twice a year instead of six times, around ₦250 million remains locked, funds that could otherwise drive energy projects or new production lines.
The Lean Principle of Flow
The Lean Principle of Flow underscores that every idle material represents wasted potential. Today, Nigerian factories confront similar challenges like high interest rates, FX scarcity, and costly imports. The remedy lies in visibility and discipline:
- Measure inventory turns by category
- Implement pull-based replenishment
- Review reorder levels
- Connect inventory KPIs directly to cash flow reports
Engineering Liquidity
Through the collaboration of engineers and finance teams, the possibility to engineer liquidity emerges. Each accelerated stock turn fortifies your financial standing.
Key Takeaway
Remember: Every unused pallet signifies missed profit. Operational rigor in materials management wields significant financial influence.
💬 Question for reflection: How frequently do you convert inventory metrics into tangible cash flow outcomes within your factory?
Contact our team to assess your inventory management and unlock the cash hidden in your warehouse.
