Working Capital Management: New Strategies for Maintaining Financial Strength Through Economic Cycles

Published On:
August 17, 2010
Authored By:
APQC
Public Content:
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In April 2010, APQC’s Financial Management Research Team, in partnership with Ariba Inc., conducted a benchmarking study to test several hypotheses about the management of working capital during and after the recession. The high-level conclusions,  APQC’s in-depth analyses, and several CFO interviews reveal, among other findings, that:

  • Companies are pushing for greater cash efficiency because, in the current economic climate, that can mean strategic advantage.
  • Stronger cash flow control leads to more options for cutting costs and driving yields—but first the paper bottlenecks have to go.
  • CFOs will be proactive in evaluating the financial health of suppliers.