Reducing capital tie-up costs, increasing internal financing capacity and releasing liquidity are the three key goals of CFOs in working capital management(WCM). However, achieving these goals is a major challenge for many companies due to various internal and external conflicts of interest.
Supply chain finance (SCF) as an alternative form of financing is an innovative dimension of WCM and opens up many opportunities for finance managers to achieve their goals in WCM together with suppliers and customers.
But how has the willingness to introduce SCF changed over recent years? Which tools are companies using to optimize working capital? Which obstacles exist in relation to the use of SCF solutions? What is the situation regarding the self-financing capacity of Swiss companies? What impact is the continued low interest-rate environment having on demand for working capital? And what percentage of invoices are automated and processed digitally at Swiss companies?
The 6th edition of the WCM Study, published by the Supply Chain Finance Lab of Swiss Post at the University of St. Gallen, explores this and other fascinating issues. The study looks at the performance fields in WCM and illustrates key methods – using best practice examples – for achieving financial flexibility beyond traditional company boundaries.
