Working Capital Management, meaning the release of liquidity tied up in day-to-day operations, is a core issue and a long-term incentive in corporate management.
Especially in recent years, it has been praised in many articles as a success recipe for overcoming the financial crisis. Need cash? Look inside your company, is the well-meant advice. This is also true, since statistically speaking, the capital commitment (in an average industrial or trading company) can be reduced by several percent of sales through good working capital management. However, companies are faced with major challenges.
Studies show that not even half of the companies manage to permanently reduce their working capital in two consecutive years. For a long-term successful working capital management, a deep understanding of the effects, its drivers and the relevant procedural links is necessary.