Working Capital Management: Short-term Cash Flow Management (PowerPoint PPTX)

DESCRIPTION

Working Capital Management (WCM) refers to the administration of an organization's short-term assets and liabilities to ensure its ongoing operational efficiency and financial stability. Effective WCM is crucial for maintaining liquidity, optimizing cash flow, and ensuring the organization can meet its short-term obligations while investing in growth opportunities.

There are numerous benefits to effective WCM, including:

•  Enhanced liquidity and financial stability
•  Reduced operational costs
•  Improved profitability and ROI
•  Stronger supplier and customer relationships

Effective WCM requires a comprehensive Working Capital Management Strategy. This presentation introduces an approach to WCM Strategy based on 8 core pillars:

1. Short-term Cash Flow Management
2. Inventory Management
3. Demand Forecasting and Sales & Operations Planning (S&OP)
4. Asset Optimization
5. Accounts Receivable Management
6. Accounts Payable Management
7. Supplier Management
8. Working Capital Performance Management

This framework is focused on the 1st pillar, Short-term Cash Flow Management, which ensures that the organization has enough cash on hand to meet its immediate needs (over the next 12 weeks) and optimizes the use of any surplus cash. Effective short-term cash flow management is the lifeblood of any organization, ensuring financial stability and enabling proactive decision-making that drives sustainable growth.

This presentation breaks down a detailed 4-phase methodology to Short-term Cash Flow Management:

1. Cash Flow Analysis
2. Planning and Design
3. Cash Flow Model Deployment
4. Continuous Process Optimization

This PPT presentation is an excerpt from a more in-depth presentation on Working Capital Management Strategy.

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Source: Best Practices in Cash Flow, Working Capital Management PowerPoint Slides: Working Capital Management: Short-term Cash Flow Management PowerPoint (PPTX) Presentation, LearnPPT Consulting