Excess and Obsolete Inventory KPI for Operative Buyers: Control E&O Exposure
Learn how operative buyers control excess and obsolete inventory using E&O exposure, action coverage, open commitments, prevention, recovery and root-cause data.
Knowledge Base
Learn how operative buyers control excess and obsolete inventory using E&O exposure, action coverage, open commitments, prevention, recovery and root-cause data.
Learn how procurement influences working capital through inventory, payment terms, lead times and order quantities, with practical actions for operative buyers.
Operating capital (working capital) becomes a procurement issue when cash is tied up in purchased materials, advance payments, unfinished supplier work, excess commitments, or inefficient payment processes. For a procurement manager, the objective is not simply to reduce inventory or delay supplier payments. The objective is to release cash without creating supply interruptions, quality problems, higher…