Introduction SKS Manufacturing has recently hired Deloitte & Touche as they are in a critical cash position with various immanent inefficiencies in their procurement and production processes. Deloitte & Touche and SKS Manufacturing will postulate to work together in orderliness to solve the issues puzzle at SKS Manufacturing so they can be successful within the automotive separate industry. Issues & Analysis There are three key issues that are present at SKS Manufacturing that need to be systematically tackled in order for stabilization of the business to occur and the long-term redesigning process to be effective. The key issues facing SKS Manufacturing are: (1) cash flow dearth (2) weak alignment and integration within the value chemical chain and (3) lack of synchronization between production and procurement impact customer satisfaction levels. The issues listed above have caused SKS Manufacturing to produce uneconomical amounts of products and non meet delivery dates due to the weak internal alignment and poor control systems in place (A1). Cashflow Shortage SKS Manufacturing unavoidably to decompose its current cash flow issue at present as poor industry analysis and lack of entropy for adequate forecasting has led them to having high inventory levels.
to boot there is a second warehouse location that is not efficient and is taking up cash reserves, thus decisions need to be made regarding downsizing and better forecasting methods to poise the current environment. Additionally there is $112 cardinal tied up in accounts receivables that accounts for 30 percent of total assets that can military service the current situation. The cost structure also seems to have red flags as the sales increased by 31 million dollars last year, but the profit for SKS Manufacturing decreased by 2 million dollars, which shows inefficiencies within their current cost structure. SKS Manufacturing needs to resolve this cash shortfall immediately as this a barrier in their path to success honorabley... If you want to get a full essay, order it on our website:
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