Releasing working capital across the supply chain
Issue 1, 2009
Strategy, Corporate finance

In a credit crisis, one common way of finding cash is to reduce working capital. However, successfully reducing working capital within one company can damage other businesses in the supply chain, exacerbating an already difficult situation all round. This article shows how substantial reductions in working capital can be achieved across the entire supply chain by dispensing with the traditional adversarial stance in favour of a collaborative approach. It offers a set of guidelines that enable everyone in the supply chain to raise the funds needed to remain strong, while giving them the best chance of making it through the capital shortage intact.