Quantzig, a leading analytics advisory firm that delivers customized analytics solutions, has announced the completion of their new article on tips to improve working capital management. A robust working capital management system ensures that the company maintains adequate cash flow to meet its short-term undertakings. Any failure of a company in maintaining its net working capital can impact business operations remarkably. Therefore, in todays competitive business landscape, effective working capital management should be one of the top priorities of businesses.
Working capital is an efficient metric to measure the liquidity, efficiency, and overall health of a company, says a supply chain analytics expert from Quantzig.
When a company lacks enough working capital to fulfill its obligations that can result in financial insolvency which in turn can lead to the liquidation of assets, legal troubles, and potential bankruptcy. Thus, it is crucial for all businesses to have proper working capital management in place.
Want to know how working capital management can help in improving visibility of key-value KPIs? Get in touch with our experts now.
Secret tips to manage your working capital
Tip #1: Optimize inventory and manage procurement
Inventory management plays an important role in yielding most out of your net working capital. Neither excess nor inadequate stocks are good for the performance of the inventory. Both can result in loss of revenue and can damage customer relationships. Therefore, companies should focus on establishing smooth communication between departments to avoid unnecessary levels of stock.
Our working capital solutions can help businesses to meet their near-term cash needs and improve flexibility. Request a free proposal to gain better insights into our portfolio of supply chain analytics solutions.
Tip #2: Pay vendors on time
Working capital analysis unveils that companies punctual at their payment maintain better relationships with their vendors. Also, such companies can grab better deals, discounts and payment terms. This can be taken as a counter-intuitive approach to working capital management. Happy suppliers can help in driving significant costs savings in the long run.
Want more tips to enhance your working capital management? Read the complete article here.
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Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 15 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on our engagement policies and pricing plans, visit: https://www.quantzig.com/request-for-proposal
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