Magazine article from our research archive:

Top U.S. companies find benefit in reducing working capital.

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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