First reason: increasing room for manoeuvre
Working capital management enables your company’s cash flows to be carefully managed. A professional approach to working capital – in other words, working capital management (WCM) – creates greater financial room for manoeuvre for companies. It allows them to optimize their liquidity, strengthen their self-financing capacity, reduce their financing costs and improve their operating margin and profitability.
The positive impact of WCM on key corporate objectives – such as liquidity, profitability and process efficiency – is also confirmed by the participants in the annual WCM study conducted by the Supply Chain Finance Lab at the University of St. Gallen.