Everything should be made as simple as possible…but not simpler.
Albert Einstein (1879 – 1955)
Working capital is a portion of a business’s investment for day to day supply chain operations. Basically, it is the money involved in doing business. It comprises company’s inventory, account receivables and cash on hand.
Working capital is usually funded by shareholder equity or through debt borrowing. It is a common measure of a company’s liquidity, efficiency, and overall condition. If this is not managed appropriately, it can signify substantial costs to a business by tying up much needed cash or by incurring financial costs. This excessive investment denotes a nonstop drain on a company’s cash flow, and can substantially limit top or bottom-line supply chain performance.
Working Capital Reduction
What is it?
Why use it?
This enables continuous production and at the same time minimises raw material and reordering costs.
Reduce cash holding costs
We help you establish an appropriate credit policy for your company with terms that attract customers new customers and keep existing ones.
Know which inventory optimisation software is suitable for which situation