Net working capital management as a cross-company discipline

Do you have an ambition to accelerate cash conversion, ensure funds for growth, and ultimately boost enterprise value? Then dive into our white paper!

27 May 2024

In a constantly changing environment, companies must adapt to survive. The quest for growth, resilience, and a competitive edge demands continuous innovation and optimization in the face of emerging technologies, shifting markets, and intense competition.

Yet, a powerful source of untapped potential is often overlooked by companies: effective net working capital (NWC) management.

Our white paper embarks on a captivating investigative journey, delving into the world of NWC management. We do not just present theories or generic advice – we conduct a thorough investigation to uncover the often-hidden potential within this crucial cross-company discipline.

Here is why we believe a deep dive into NWC management is needed:

Release cash to grow:
access to capital is essential for any company to stay in business. By optimising NWC levers, companies can free up tied-up cash, a valuable resource that fuels growth initiatives, investments and strategic manoeuvring in uncertain times.

Beyond efficiency, towards transformation:
NWC management is not just about squeezing more out of existing processes. It is about fostering a strategic approach that impacts all aspects of the business. We delve into how NWC optimisation can drive cross-company collaboration, improve financial and operational efficiency and ultimately lead to transformative change and competitive advantage.

Data-driven insights, actionable strategies:
we do not rely on hunches or guesswork. This white paper draws on data analysis of 1,500 companies across industries. We combine this with real-world insights from interviews with CXOs to uncover proven strategies that can be implemented to maximise your NWC potential.

What this paper is, and what it reveals

This white paper offers a comprehensive exploration of NWC management. It begins with a global data analysis and then explores real-world NWC management strategies through interviews with CXOs. Readers will find practical guidance on how to align NWC management with the company’s operating model, along with insights into how AI enables NWC management practices to advance. 

Chapter 1

Global analysis: navigating worldwide industry NWC trends

What this chapter is

We analyse global trends and industry benchmarks to uncover the hidden forces shaping NWC performance across 1,500 global companies. This data enables you to identify opportunities and understand your competitive landscape.

What this chapter reveals

Rising interest rates make effective NWC management crucial to protecting cash flow. Companies must navigate shifting supply chains with regional sourcing and accurate forecasting to optimise inventory levels. Industry benchmarking reveals improvement potential and demonstrates the link between a shorter CCC and an improved company top and bottom line.

Chapter 2

CXO interviews: exploring NWC management practices

What this chapter is

We go beyond data crunching, seeking practical wisdom from industry leaders. Learn from real-life stories to discover how successful companies are breaking down silos, fostering collaboration and driving NWC excellence.

What this chapter reveals

NWC management is an ongoing journey requiring top-down commitment and buy-in for lasting change. It is essential to empower local teams for strategy execution, break down functional silos for collaboration and align on common KPIs for accountability. Effective NWC management directly improves a company’s enterprise value and attractiveness for investors.

Chapter 3

Embark on the journey: a proven approach to effective NWC management

What this chapter is

Based on years of consulting experience, we unveil a structured framework for optimising NWC. Learn how to align your operating model, leverage sales and operations planning (S&OP) and identify strategic levers to unlock hidden cash reserves.

What this chapter reveals

To achieve NWC success, strategies must be aligned with your company’s specific operating model. S&OP serves as a cross-company playing field for decisionmaking and aligning NWC goals with broader business objectives. Addressing the root causes of NWC issues is key to sustainable improvements, along with targeting strategic areas and fostering a culture of continuous improvement.

Chapter 4

AI as an enabler: from enhanced to advanced NWC management

What this chapter is

We explore how AI can change NWC management. We delve into how AI can enhance and advance liquidity forecasting, automate tasks and propel you towards long-term financial resilience.

What this chapter reveals

AI offers a powerful transformation and advancement of NWC management, but a clear pain-point-driven strategy is needed for successful implementation. A structured approach to implementation is essential to maximise benefits. We delve into how AI can improve liquidity forecasting and empower better decision-making. Tailored AI solutions addressing specific NWC components deliver the greatest long-term value.

Download the full white paper

By delving into this white paper, you will gain knowledge, strategies and tools to unlock a hidden growth engine within your company.

Prepare to discover how NWC management can help transform your business, drive impactful change and propel you towards a future fuelled by optimised cash flow and boosted business resilience.


Download here

Subject matter and industry experts