Give Your Stakeholders a Raise - Increase Asset Productivity!
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Overview: Total asset productivity is basically sales divided by the average difference between operating assets and operating liabilities during a given period of time expressed as a percentage. Financial people understand this concept well, but somehow it doesn't easily translate into line management - the very people responsible for the effective use of corporate assets. Global Marketing finds that many companies work hard at portions of asset management such as inventory control, but this is more of a piece-meal approach. Asset management including improvements, timetables and expected results should be a key part of any company's on-going business strategy.
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