In the modern financial world it is vital to appreciate the complex relationships between any organisations many functions. These relationships need to be understood right from when strategies are ‘rolled out’ regarding cash flow through to when cash is actually received or paid.
Working capital optimisation and cash flow management looks at how working capital optimisation and cash flow management works through supply and reverse supply chains, inventory, and demand chain transformation.
Working capital optimisation and cash flow management enables you to:
- look at various aspects of the supply chain including commercial terms, discount structures, payment scenarios, and rights of lien and asset ownership
- understand how to minimise work in progress as it can take up space and shorten shelf life and represents uninvestable capital
- monitor and analyse stock to avoid it becoming a liability
- consider the use of the demand chain, such as commercial terms, compliance to these terms and credit rating agencies
- understand the reverse supply chain, the ‘green agenda’ and corporate social responsibility.