Working Capital Optimisation

How to manage your working capital for improved profitability

Is it for you?

Yes, if you’re a corporate treasurer, accountant, purchasing specialist or a financial professional involved with managing working capital for small or large companies.

What is it about?

This course is aimed at those responsible for controlling the working capital of a company or organisation. It deals with basic principles for smaller companies and strategies for larger enterprises to employ.

Course outline

Introduction

• Importance of working capital management
• Cash flow and profit relationship
• Risk and return trade off

The Working Capital Cycle basics

• Cash conversion cycle
• Inventory
• Debtors and Days Sales Outstanding
• Creditors and Days Payable Outstanding

Working Capital Optimisation - theory

• Economic Order Quantities
• Process improvement (P2P, O2C)

Working Capital Optimisation – basic practice

• Credit control
• Stock control techniques (ABC, VED, SDE, MRP Just in time)
• Debtor management & the costs of offering credit
• Management reporting – KPI;s

Working Capital Optimisation – advanced practice

• Treasury procedures
• Technology solutions (ERP, DDMRP)
• Payment systems (EIPP,B2B)
• End to end cash flow management
• Outsourcing of debt management

Working capital exercise

Financing Working Capital

• Supplier financing
• Liquidity management
• Capital intensity

What will you gain?

An overview of why working capital management is vital for the profitability and survival of all companies. You will also gain an appreciation of the techniques that can be employed to manage working capital and permanently improve cash flow.

This one-day course involves practical exercises to apply the content to real situations.

Trainer

• Richard Thornton