Conflicting departmental interests often hinder efforts to improve an organisation’s working capital and cash conversion cycle. To encourage alignment of these goals across functions, the first step is to help sales and procurement teams to understand the benefits to the company of improving working capital, suggests Erik Wanberg on CFO.com. Next, assign specific performance indicators in relation to the desired improvements and nominate a liaison between finance and other functions to support and enable the changes.
3 steps to improve working capital
Please note: This item is from our archives and was published in 2015. It is provided for historical reference. The content may be out of date and links may no longer function.
