One Easy Step To Improve Your Working Capital
June 14, 2022
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5 min
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Sue as a CFO understands the significance of improvements in working capital management and that it can generate more capital for her business, improve operational efficiency, increase profitability and potential growth.
The next obvious question now is how can Sue improve her working capital? Well, here is an easy solution. Extract raw payment data from your ERP or Finance system and send this information to a spend analytics system. Sue had a jaw-dropping moment when she saw the spend analytics dashboard and realised that she could free up £250M in cash just by changing the payment terms with their key suppliers from 30 days to 60 or 90 days and putting in place supply chain financing. The £250M freed up working capital was achieved in just one easy step by properly managing the payment terms. This additional working capital of £250M for Sue was key to fund their company’s next phase of growth by ensuring that there was enough cash to pay monthly bills, weather the economic downturn, and take advantage of expansion opportunities to improve their market share.
If you want to gain benefits similar to Sue and would like help in freeing up your working capital to fund your next phase of business growth, book a demo by clicking on the link here.
This guide will teach you how to use your spend data to transform your business for profitable growth.
Download our free Low Risk Low Value (LVLR® ) framework to get complete spend visibility and achieve over 20% reduction in costs.
Download our Category Management Optimiser Checklist that has helped business leaders monitor and improve the effectiveness of their existing spend categories and subcategories enabling them to add millions to their bottom line.
With traditional cost-cutting measures failing to drive business growth, finance leaders are discovering a new approach to cost control and growth — one that is focused on data-driven decision-making and continuous improvement.
With Spend Analytics, finance leaders can achieve greater accuracy in their budgeting and forecasting processes, which can lead to improved financial performance for their organisations.
In today's uncertain economic environment, Spend Analytics emerges as a transformative solution for finance leaders to meet the imperative of driving business growth.
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