During the recession of 2007–2009, many companies with poor control over their working capital suffered because traditional lenders became unreliable and customer losses accelerated. One of the lessons learned was that working capital can be a more reliable and less expensive source of funding as compared to traditional sources such as bank debt. Additionally, effective control over working capital better positions a company to avoid credit losses by implementing a program that monitors customer relationships in a timely manner. As a result, for many companies, the management of working capital is considered strategic and the implementation of programs to achieve working capital optimization is viewed as a priority.
Never has the optimization of working capital cash flow been more important to a company than it is in today’s increasingly complex, global economy. Excellence in working capital management gives a company an advantage over its competition that does not do so.
Consider a current-day situation in which your company is coming under increasing pressure from lenders and shareholders to improve its financial performance. Cash flow from working capital is now a major point of focus for your CFO and CEO. As a result of neglect and a decentralized organization structure, your company does not have a formal working capital program in place. The senior management now wants someone from the leadership team to take charge of implementing improvements in working capital management.
Would you like to understand how to drive global working capital performance for your company? If so, the Accenture Academy course Explaining Global Working Capital Optimization
is designed for you. The course material is strategic in scope but practical in application such that lessons learned can immediately be applied at your company. Your path to success in working capital management will be based on a comprehensive understanding of working capital processes, how working capital performance is measured, and how cash flow can be tracked intraperiod and favorably influenced for successful cash generation. This knowledge can enable you to have a more strategic role in your company.