Cash for Growth: The Neglected Power of Working-Capital Management

Many companies are concerned about their ability to generate the funds needed for growth. But there is one potentially powerful source of cash that is often overlooked: working capital. By fundamentally rethinking and streamlining key processes across the value chain, companies can achieve greater reductions in working capital—as much as 30 to 40 percent—and cost savings of 5 to 10 percent. This increase in working capital productivity can boost cash flow and sharply reduce a company’s dependence on outside funding.

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