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Reducing fixed costs & improving cash flow

WIP & inventory

Elimination of unnecessary stock and reduction of Work In Progress (WIP) improves cashflow. We all accept that ‘cash is king’ and by working with PP C&A, you could drastically improve your working capital and cash conversion cycles.

PP C&A will take ownership of the supply chain and ensure manufacturing is aligned to your precise needs, operating on both pull (Kanban), JIT and discrete purchase order methodologies with the clear aim to deliver to the exact date you need it. Transferring ownership of the supply chain to PP C&A will ensure true efficiency in resource allocation.

For outsourcing to deliver the maximum benefit, then the activities associated with purchasing and supply chain management should be included. The outsourcing partner should have the capabilities and skills to inherit, manage and develop the associated supply chain.

If you still have to manage parts of it and the associated costs of purchasing/logistics that go with it, then you are not going to see the true benefits.

An outsourced solution clearly creates a fixed cost of ownership for the customer, taking away the variability associated with overall volumes, batch sizes, fluctuations in material costs, internal direct costs (typically driven by variations in efficiency) and overhead cost amortisation.

Other (often) hidden costs of over-production, excess inventory, scrap and waste, over time costs etc. are all eliminated when an outsourcing solution has been designed and implemented successfully.


Related resources from the blog

Tony Hague, CEO of PP Control & Automation, explains why strategic outsourcing offers the perfect antidote to risk and the uncertain times manufacturers are increasingly facing. We are currently living in what many media commentators are calling ‘unprecedented times’ and it’s difficult to argue with that notion, especially when it …

When considering the benefits of strategic outsourcing, the obvious and clearly significant areas of focus tend to be directly linked to an organisation’s need to grow sales revenue and market share by increasing production capacity, creating flexibility within the manufacturing process and reducing lead times, both internally and for the …

6 months on since PP Control & Automation’s in-depth feature for Business Focus Magazine, the message on growth in the face of uncertainty is perhaps even more appropriate now, as Theresa May attempts to get MPs to vote for the Brexit withdrawal agreement on 11th December. If she clears that …


Case Studies on strategic outsourcing

Mazak UK

As the years have gone by, the relationship between the two businesses has become more interlinked, with PP C&A increasingly being asked to be involved in the design stage of new machine builds.

Reducing fixed costs & improving cash flow » mazak » PP Control & Automation

Ishida: Strategic outsourcing partnership

Watch how Ishida realised their growth potential by making outsourcing part of their manufacturing strategy.

Collected publications & case studies (2019-2020)

PP Control & Automation has had the opportunity to publish a variety of articles in the UK’s leading journals for the manufacturing industries.

A B Graphic International Ltd

During the design engineering discussions, it quickly became apparent that a more value-added design would be beneficial, allowing for a modular, configurable and pre-wired (Plug & play) style solution with significant benefit.

Reducing fixed costs & improving cash flow » ABG Logo mini » PP Control & Automation

Inventor-e

Inventor-e was established in 2001 as a technology business to provide point-of-use solutions to industrial manufacturers and the facilities management markets.

Reducing fixed costs & improving cash flow » Inventor e logo business card mini » PP Control & Automation

Fullwood Packo

A huge surge in demand for the latest machines within the dairy industry means that Fullwood Packo has enjoyed particular success with its M2erlin robotic milking systems.

Reducing fixed costs & improving cash flow » fullwood packo logo » PP Control & Automation

Explore core PP C&A services


Consult with the experts in strategic outsourcing

Realise your growth potential by making outsourcing part of your manufacturing strategy.


At PP C&A, we never assume that a solution for one customer will work for another, because every customer is unique. That is why we will never try to simply sell you an ‘off the shelf solution’.


We believe in meeting you, listening and understanding your needs first. If you are considering outsourcing for the first time or you wish to review your current outsourcing strategies, we would welcome the opportunity for discussion





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If yes
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2. Are you considering outsourcing or considering changing supplier?
3. Are you experiencing barriers to growth?


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