WCM is also worthwhile if a company does not have serious liquidity problems
Companies often have a lot of idle capital – possibly because it is unnecessarily tied up in stock, or because customers pay late and the company has to wait a long time for its money as a result. Measures in working capital management are applied to accounts receivable, accounts payable, liquidity and inventories to release unnecessarily tied-up capital. This gives companies greater financial flexibility, allowing them to invest in growth projects, for example. The holistic WCM approach unlocks not only the potential of a company internally, but also across its entire supply chain. Optimization of processes makes it possible to achieve long-term cost and quality improvements. Thanks to improved margins and profitability, these directly influence a company's success.