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Industry Week recently an article on how to optimize your supply chain to improve cash flow that was pretty much a 21-point mega cash-flow optimization checklist for manufacturers that need to improve their cash-flow, which starts with EBITDA (earnings before interest, taxes, depreciation, and amortization) optimization. The suggestions offered were:

• Business Process Optimization
  Reduce direct variable process costs with better information flows that are designed to decrease order management costs.
• Direct Effort Optimization
  Decrease direct variable costs by increasing the value-added-to-nonvalue-added ratio through network and production optimization.
• Efficient Utilization of Tools
  Lessen direct variable costs by ensuring the right number of tools are available, adequately utilized, cared for, and properly stored.
• ERP & PLM
  Diminish divisional ERP/PDM/PLM software fixed costs by rationalized all of the various ERP, PDM, and PLM instances in use.
• Indirect SG&A Optimization
  Constrict variable headcount costs through processes and procedures as well as organizational and software solutions.
• Logistics Optimization
  Shrink direct variable costs with better packing and storing that reduces waste and overhead.
• Machine Optimization
  Compress direct and indirect variable costs by optimizing machine utilization and maintenance schedules.
• Network Optimization
  Ebb fixed costs by reducing the number of redundant facilities.
• Obsolescence Cost Mitigation
  Wane direct variable costs through better forecasts and inventory management.
• Lean your Plant Layout
  Subside fixed costs by reducing the space needed for the same output.
• Product Management Optimization
  Abate indirect variable costs by improving product-use instructions.
• Production Optimization
  Contract direct variable costs through cycle time reduction.
• Quality Control Assessment of Production
  Curb indirect variable costs by minimizing failure rates.
• Research and Development Optimization
  Curtail indirect variable costs by reducing the need for engineering support staff.
• Risk Management
  Lighten indirect variable legal costs by assessing potential business risks.
• Safety Audits, Training, & Insurance Spend Management
  Lower indirect variable costs by auditing the production area and minimizing safety issues.
• Spend Management
  Restrain direct variable costs by evaluating existing assets to realize consumption cost savings.
• Supplier Audit
  Check indirect variable costs by ensuring material and information flows with the supplier are optimized to minimize failure and rejection rates.
• Supply Chain Management
  Slash direct variable costs by developing optimal just in time structures with demand planning.
• Supply Chain Management Optimization
  Minimize direct and indirect variable costs by focussing on financial, material, and information flows in planning/scheduling, logistics, and procurement.
• Transportation Management
  Narrow direct variable costs by optimizing shipment lot sizes, consolidating shipments, and improving freight terms.