What economic downturn can teach you about working capital management

Posted by Philipp Flemming on Oct 15, 2020 8:30:00 AM

In the last few months, we have seen how important liquidity is: as the COVID-19 crisis hit, a threat to the survival of many companies surfaced within the first few weeks. More than ever, this shows the importance of working capital management as an existential element to the financial health of your business. This article kicks off our series on working capital management. In the next weeks, we will take a deep dive into working capital management and its most important aspects. This week: the impact of economic downturn on working capital management.

Topics: performance gap, covid19, working capital management

Covid-19 bullwhip revisited

Posted by Dr. Christoph Kilger on May 27, 2020 3:36:19 PM

As described in my earlier post, many supermarkets around the world experienced shortages of toilet paper due to the Covid-19 induced bullwhip effect. Now, we witnessed the second phase of this phenomenon. As consumers increased the safety stock levels of toilet paper in their homes in order to prevent stockouts – resulting in stockouts on the supermarket shelves – they purchased a lower quantity in the last week.

Topics: supply chain, covid19, bullwhip effect

Covid-19 induced bullwhip effect

Posted by Dr. Christoph Kilger on May 25, 2020 9:04:50 PM

In the last weeks, toilet paper was short in many supermarkets due to Covid-19. This is a nice example of the dynamics in supply chains, where a small change might lead to tremendous fluctuations of demand and supply.

Topics: supply chain, covid19, bullwhip effect