Working Capital Efficiency
Working capital efficiency involves the optimal management of a company’s short-term assets (such as inventory and accounts receivables) and liabilities (e.g. accounts payable) to ensure sufficient liquidity to meet day-to-day operational needs while maximizing profitability.
Key Client Challenges
Our Process
Baseline Assessment
Baseline Assessment
Evaluate key working capital metrics—Cash Conversion Cycle (CCC), Days Sales Outstanding (DSO), Days Payable Outstanding (DPO), and Inventory Days—to establish current performance and identify constraints.
Accounts Receivable Optimization
Accounts Receivable Optimization
Analyze aging reports, tighten credit controls, and offer early payment incentives to accelerate collections and reduce bad debt risk.
Accounts Payable Strategy
Accounts Payable Strategy
Align payment terms with cash flow goals—negotiate favorable terms with suppliers while avoiding late fees and preserving vendor relationships.
Forecasting & Scenario Modeling
Forecasting & Scenario Modeling
Use dynamic financial models to project cash flow and working capital needs under various business conditions, enabling proactive decision-making.
Inventory Efficiency
Inventory Efficiency
Implement lean inventory practices, reduce stockpiling, and improve demand forecasting to free up cash tied in working capital.
Cash Flow Management
Cash Flow Management
Monitor inflows and outflows daily or weekly to ensure sufficient liquidity, reduce volatility, and align with business obligations.
Cost & Discretionary Spend Control
Cost & Discretionary Spend Control
Review and control variable or non-essential expenses to conserve cash without impairing operational performance.
Financing Flexibility
Financing Flexibility
Evaluate and manage short-term financing tools (e.g., credit lines, trade finance, factoring) to cover gaps while minimizing cost of capital.
Operational Process Optimization
Operational Process Optimization
Streamline order-to-cash and procure-to-pay processes to accelerate cycle times, reduce manual errors, and improve cash conversion speed.
Technology & Automation Enablement
Technology & Automation Enablement
Adopt treasury management systems, AR/AP automation, and real-time dashboards to enhance visibility, control, and efficiency across cash-related functions.
Cross-Functional Alignment
Cross-Functional Alignment
Ensure finance, procurement, operations, and sales teams are aligned on cash flow targets and incentivized to support working capital goals.
Continuous Monitoring & Improvement
Continuous Monitoring & Improvement
Track KPIs such as current ratio, quick ratio, and working capital turnover. Use rolling reviews to refine policies and maintain alignment with business growth and risk profiles.
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