The credit crisis allied with the advent of a global recession has brought working capital management into sharp focus. The contraction of ready availability of funding from the banking sector combined with the increased threat of slow payment or non-payment from customers and former customers means that the need to keep control of working capital is now a top priority. Treasurers should be leading the process of reviewing working capital needs by working with business units to ensure that the company is looking into every corporate corner to maximise capital and cash efficiency. Treasurers should employ their skills and competencies to ensure that there is no spare cash, no poorly performing debtors, large amounts of stock or poor work in progress practices that are putting unnecessary strain on the balance sheet. These skills and individual experience need to be brought into play. As the features and articles in this supplement demonstrate, cash management is an area which can benefit from innovation particularly in terms of technology and banking products and solutions. These can be used alongside strong working capital management planning and controls to minimise the risk of liquidity becoming the Achilles heel in these turbulent economic times.
PETER WILLIAMS
Editor
