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
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