5starbusinessnetwork

When Cash Is The King In The Aftermath of the COVID-19 Stimulus –
Your Business Networks Will Save Your Business
When Cash Is The King In The Aftermath of the COVID-19 Stimulus – Your Business Networks Will Save Your Business
When Cash Is The King – Business Networks Triumph

The story repeats in industry after industry whenever testing times arrive, as they eventually do in most industries.
In fact, the data from a systematic study carried out by the Aberdeen Group reveals two critical insights.
Firstly, the companies with more robust business networks have far superior cash conversion cycle (we will discuss the cash conversion cycle in chapter 7) – nearly 6 times better cash conversion cycle.
Take a look at the figure 1 below:

Secondly, and more importantly, their cash conversion cycle actually improved during the 2 years of testing times leading up to the global financial crisis, while the rest of the industry went backwards.
As you can see in the figure 2, 92% of business network masters have improved their cash to cash cycle over the two years leading up to the Global Financial Crisis (GFC) while only 18% of business network laggards have improved it, while for 29% of them it became worse.

Is the result shown in figure 2 surprising?
Hardly, if you reconsider the story of Nokia vs. Ericsson.
Same catastrophic fire nearly decimated one company while left the other one even stronger to face onslaught of another heroic business network – that of iPhones.
In the book The 5-STAR Business Network, we examine that story in Chapter 8 when we discuss how New Product Development cycles are shortened immensely by appropriate use of robust business networks.

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ABOUT THE AUTHOR
VIVEK SOOD

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

WHY BUY THIS BOOK

This book will help you use
fresh thinking to regenerate
your supply chain in the
post COVID-19 business
renaissance.

ALSO BY THE SAME AUTHOR

UNCHAIN YOUR
CORPORATION

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