Working Capital Optimization

Optimizing working capital is crucial in light of high interest rates causing cash flow strain and elevated post-pandemic inventory levels, which affect liquidity. Utilizing data transparency in operations enables businesses to streamline working capital, enhancing cash flow and financial resilience.

Working Capital optimization for an effective cash flow management

In today’s ever-evolving business landscape, the importance of effective working capital optimization in supply chain management and procurement cannot be overstated. With interest rates reaching and remaining at all-time highs, businesses find themselves grappling with constrained funds for day-to-day operations, aggravated by mounting debt service payments that put a squeeze on cash flow. Moreover, the lingering aftermath of the pandemic has left many companies with overstock, adding to liquidity constraints and driving upholding costs. 

This, in turn, has led to increased pressure for discounts, ultimately eating into profit margins. The resulting tense cash flow situation not only complicates payments to suppliers but also jeopardizes a company’s ability to meet crucial financial obligations, including salaries for employees.

In the face of these multifaceted challenges, strategic working capital management emerges as an indispensable tool for sustaining procurement operations and safeguarding financial health. Steering these complexities requires a proactive approach and a keen understanding of the implications. Stay ahead of the curve by taking advange of our expertise and solutions in strategic working capital management to secure your competitive edge and increase the resilience of your company.

Our working capital solutions and methodologies

Unlock the potential of your working capital with our cutting-edge tools designed to actively manage cash flow. Our KPI dashboards leverage AI to provide real-time insights, empowering you to make informed decisions swiftly. Identify areas with potential for improvement and prioritize challenges with the KPI dashboard to achieve short-term risk reduction and long-term sustainability.

From data gathering encompassing stock, payment, and cash flow data, to AI-driven evaluation and KPI dashboard development, we ensure a holistic understanding of your cash flow. Leveraging our industry experience and internal knowledge, we benchmark KPIs and collaboratively set targets for success. Our implementation roadmap is tailored to address key areas such as inventory management, payment terms optimization, and cash management. Through process improvement and streamlining, we enhance efficiency and effectiveness, realizing sustainable results. With continuous monitoring and adjustment of cash management levers, we ensure that your working capital remains optimized and resilient in the face of evolving challenges.


Task force for stock level optimization

  • Data model creation: Establishing a robust data model for transparent inventory management, identifying critical items and overstock.
  • Target picture: Using advanced analytics to define optimal re-ordering points and safety stocks for efficient inventory management.
  • Levers and measures: Leveraging our industry-proven SCM & Resilience toolbox and targeted tactics like broker sell-off to optimize working capital.
  • Working capital optimization: From short-term measures to mid- to long-term strategies, we tailor solutions to meet your business needs, aiming to return to optimal stock levels.



Payment terms optimization

  • Transparency creation: Using advanced analytics to develop actionable dashboards and benchmarks for tailored optimization aligned with client needs.
  • Negotiation excellence: Harmonizing payment terms through strategic techniques and benchmarks to enhance negotiation outcomes.
  • Payment terms criteria: Introducing supply chain financing and holistic payment terms management to foster relationships and mitigate risks.


Cash management

  • Cash flow management toolbox: Ready-to-implement measures prioritizing value impact and time sensitivity.
  • Clear credit supply plan: Structured approach ensures credit availability during tense situations.
  • Budget gatekeeper function: Oversight role maintains adherence to financial guidelines.
  • Communication support: Providing expertise for transparent action implementation and team collaboration.
  • Real-time reporting and control: Utilizing proven tools and methodical expertise for transparent monitoring and decision-making.


Get to know our working capital experts

Patrick Lepperhoff

Principal Contact

Carl Punkenburg

Principal Contact



Discover further insights on the topic of working capital

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Times on the world market are uncertain - flexibility is the order of the day & requires high cash reserves

Client Case

We were commissioned to introduce high-performance processes in procurement and to support the creation of a central digital platform for procurement.

INVERTO Magazines

More financial freedom of movement through step-by-step optimisation of working capital management