Sustainable working capital management is not only about improving processes, having shiny-looking KPI reports in place, and fine-tuning your balance sheet. Working capital management is a cross-departmental discipline that poses particular challenges within your company’s organizational setup. Today, we want to take you through some ideas on how to establish working capital management as a foundation of your organization.
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.