In our third article in our Capital Management series, we explore working capital management and why understanding its every dimension is absolutely critical.
The article provides key insights into how organisations can formulate a long-term plan to better measure and manage working capital and demonstrates why they must be open to adjusting operational processes to make a more lasting change.
- Are you receiving key metrics on working capital including accurate cash flow forecasts?
- Does ownership of working capital sit at very senior levels in your organisation (CFO/COO)?
- Do operational managers focus on improving flow between process steps, or on utilisation of assets?
- Does your organisation undertake regular working capital audits or benchmarking exercises?
- Have you explored funding alternatives best matched to your working capital cycle, such as inventory, supplier or debtor finance?