Dogma Alares helps FMCG company reduce working capital position by 9%
When a leading FMCG company in Türkiye noticed that its working capital was growing more quickly than its sales, the management team sought a clearer understanding of what was driving the increase. The company engaged Dogma Alares as its consulting partner to conduct a data-driven review of the cash-to-cash cycle, focusing on receivables, inventory behaviour and the supply network.
The company is one of Türkiye’s established FMCG producers, operating a broad portfolio across multiple categories with nationwide production and distribution. Its scale and complexity made inventory dynamics particularly critical for managing liquidity and supporting continued growth.
To understand the drivers of the company’s rising working capital, the Dogma Alares project team developed hypotheses across receivables, payables and inventory management. Financial and operational data were analysed, targeted workshops were conducted and industry practices were benchmarked to validate or eliminate these hypotheses.
In parallel, interviews with key stakeholders helped clarify commercial dynamics, planning behaviours and operational constraints influencing the cash-to-cash cycle.
The assessment included a detailed review of lead times, service level structures and demand forecasting accuracy, supported by SKU clustering simulations. The product portfolio was also examined, and the distribution network was evaluated to determine whether structural factors were contributing to excess working capital.
Building on these insights, a set of operational and structural improvement levers was identified and translated into actionable initiatives. These initiatives spanned inventory optimisation measures, more targeted service level definitions, portfolio simplification and a refined network design.
In close conjunction with leaders from the FMCG client, initiatives were prioritised based on impact and feasibility. That led in turn to a clear roadmap that guides the company’s short- and medium-term improvement efforts.
The results
The assessment highlighted concrete opportunities to improve liquidity by setting more appropriate service levels for different product groups, reducing variability in lead times, improving demand forecasting through SKU clustering, simplifying the product portfolio and reorganising the distribution network to reduce overall stock requirements.
Based on these recommendations, the company implemented targeted initiatives and achieved a 9% reduction in working capital, supported by more stable lead times, better-targeted service levels, more consistent demand planning, a simplified product portfolio and a more efficient distribution setup.
These measures delivered meaningful liquidity benefits while maintaining profitability, service levels and commercial performance.
