Nearly all businesses are concerned about their ability to generate the funds necessary for growth, especially given the tighter capital markets and the ongoing economic downturn.
Generally, companies focus first on increasing their employees' productivity while cutting internal costs, such as salaries or jobs. However, in most cases, workers' idle time and salary offer marginal improvement to the bottom line. On top of that, these cuts are generally unsustainable.
The next area in which many companies cut costs is with vendors and suppliers. However, suppliers can only be squeezed so much before you are no longer a valued customer.
Businesses must find and correct the root causes of excess working capital and develop techniques to improve how they manage inventory, payables, and receivables. Additionally, companies must improve forecast accuracy and product design to minimize inventory levels. Finally, processes must be simplified in order to eliminate costs.
What We Do
Bagley looks beyond cost management and focuses on maximizing the income generating potential of capital employed. We seek to optimize the productivity of both current and fixed assets, thereby freeing cash that can be put to uses that are more strategic.
Our consulting team boasts expert problem solvers with broad-based experience across industries, business functions, and client needs. By utilizing proven methodologies for operational process improvement, clients increase net profits, while reducing costs, improving employee morale, and increasing customer loyalty.
- We help businesses eliminate unnecessary or redundant activities and streamlining those that are necessary.
- We measure factors such as time, cost, errors, and volume to identify inefficient processes. We then redesign them for significant cost savings and performance improvement.
- We work in partnership with clients to rethink processes that are the root causes of excess working capital. Our methods reduce buffer stock, decrease replenishment times from suppliers, and optimize cash collection and payment cycles.
- We help identify unnecessary assets and associated costs through our focus on capital expenditure allocation processes.
- We help clients reduce costs by analyzing their cost structures, defining clear cost-cutting targets, while prioritizing cash-generating activities.