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Top U.S. companies find benefit in reducing working capital.
- Article from:
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Manufacturing Business Technology
- Article date:
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December 1, 2006
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Copyright informationCOPYRIGHT 2006 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Staff
The largest 1,000 companies in the U.S. saved $72 billion in working capital in 2005 by enhancing the way they collect bills from customers, pay suppliers, and manage inventory, according to survey results from Atlanta-based consulting firm Hackett-REL .
Working capital is the capital invested in operating processes to buy, make, and sell to generate profit. Operating working capital includes trade receivables and inventories less payables. Typically, a reduction in operating capital can be achieved via improved collection, dispute, and credit management; inventory and supply chain optimization; supplier consolidation; and more efficient buying, ...
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