Working Capital Management
Strong inventory management a critical success factor
- Short term actions - expect $20–25M reduction in reported inventories as of March 31, 2005
- Modifying contract manufacturer production requirements within lead times to align with seasonal demand fluctuations
- Modifying PO terms to put the inventory back onto the contract manufacturer
- Continued improvement in packaging and freight routing
- Continue to balance freight costs vs. working capital carrying costs
- Longer term actions
- Retooling supply chain to take advantage of partners capabilities to significantly increase the velocity of our inventory assets
Secured $40M credit facility to provide flexibility in managing working capital to support revenue growth