Working Capital Management

Working Capital Management is about increasing the efficiency and the profitability of your business. Simplified: Accounts Payables, Inventories and Accounts Receivables constitute the cornerstones of WCM. By working with these aspects in a structured and fact based way, companies can often release significant amounts of cash.

We take an operationally driven approach when optimizing Working Capital. We always base our recommendations on detailed data analysis and work closely together with our clients during implementation to ensure sustainable results. We have a solid track record and have helped numerous companies within a wide range of industries achieve their goals. Average decrease in Working Capital among our clients is 25%, meaning capital for other, more fun things! Why not invest you freed capital in your growth journey? Or introducing new business areas?

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Working Capital Management FAQ

What is working capital?

Working capital is capital generated from driving a business. The main components are inventory, accounts payables and accounts receivables.

How does working capital management improve our profitability?

Working capital improves profitability mainly be reducing how much capital a company needs to fulfil it’s promises to its customers. Oftentimes, positive effects on EBIT can come from improved sourcing and minimizing lost sales due to stock-outs.

What are some of the most common issues with working capital?

High inventory levels are often believed to be a prerequisite to be able to deliver goods. However, by having too much inventory, the opposite might actually be true since the risk of having the wrong things could increase. Also, not acknowledging the importance of cash flow and negotiating terms that focus too much on price, could lead to liquidity issues – especially if the company is seasonal.

How can Capacent_x help us improve our working capital?

Capacent takes an operational approach to optimize working capital. This means we look at how processes can be improved with the purpose of serving our customers better, but with less capital tied up. We combine a data-driven approach with hands-on implementation support to ensure activities are implemented and potentials are realized. We often tie our fee to the results so our client feels confident in our support.

Optimizing your Working Capital

We are ready to tie our fee to the measurable results we achieve together

  • We partner with our clients to exploit untapped potential of financing coming from their operative working capital. This by optimizing the supply chain, the supplier interface, and the customer interface. With a deep understanding and wide experience of optimizing working capital, we increase value creation and value capture.

  • We are fact- and data-driven and always adapt theory and approach to fit our client’s business. This to secure value creation in all activities leading to measurable results.

  • We work closely with key-individuals at all levels of the organization, from the board of directors to the shop floor. Together we improve processes to implement the desired change.

  • We believe that value starts with people, and always have the overall aim to build a culture where value delivery and profitability are in focus. We do this through proper governance, group training sessions and personal coaching.

  • We enable sustainability and continuous development with digital tools that create visibility and insight. Monitoring of relevant KPIs and utilizing data in BI helps put important issues in focus to stimulate action, even after a completed successful project.


The three cornerstones of WCM

Accounts Payables

How long does it take before we pay our suppliers? Often an overlooked point of negotiation in our Profit & Loss focused world. By focusing on the right suppliers, by tracking the right KPIs, by using fact-based analysis, and by training the right people we improve your negotiation strength.


How much capital is tied up in your inventory? It is not about simply reducing inventory, it is about optimizing it. Understanding your customers' needs and the limits of your supply-chain is key. Only when the right people talk to each other with the best data at hand will you reach the sweetspot.

Accounts Receivable

How fast do we collect money from our customers? Time is money and a good payment term can easily be profitable. Make sure your organization knows the value of a late day, systematically evaluate customers payment patters and be proactive in your collection process.

How we deliver


Working Capital Management typically involves several functions participating in order to be successful. Communication and collaboration is key to ensure results that last over time. By working closely with our clients, we make sure we understand their needs and adapt our support accordingly. Together we make change happen.​ 

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