Working Capital Planning & Cash Flow Management

Introduction

Working Capital is key in every organization, because especially in the cases of manufacturers and merchandisers f there is a lot of money tied up in accounts receivable and inventories.

How you manage that capital can be critical to your liquidity and profitability.

The recent crisis has resulted in uncertainty with respect to how businesses can continue to survive in the new working conditions of supply chain disruptions.

Due to this, there is a need for companies to gain maximum visibility of their liquidity situation, develop foresight into working capital cycle activities and reassess the adequacy of their funding lines and cash inflows/outflows.

Difficulty in socialising with banks, risk aversion to lending, increase in credit downgrades is leading companies to evaluate alternative methods of financing.

Companies urgently need to get control of their liquidity situation by deploying crisis resilient response framework that will ensure long term sustenance.

To address these challenges, the workshop will focus on: 

• Improve cash forecasting and liquidity management
• Improve funding strategy and optimise costs
• Spend analysis for critical customer and vendor relationships
• Evaluate alternative methods to fund supplier payments and monetise receivables

Understanding and Improving Operating Cash Flow 

• Understanding Cost Behaviour
• The Cost – Volume – Profit Relationship
• The Drivers of Profit and Shareholder Value
• Measuring and Managing – Return On Investment
• Measuring and Managing – Asset Management Efficiency
• A strategic Approach to Cost Reduction

Understanding and Optimising Working Capital 

• How Working Capital Drives Financial Performance
• Understanding the Working Capital Cycle
• Practical Tools to Optimise Inventories
• Practical Tools to Optimise Trade Receivables
• Minimising Cash Float and Accelerating the Cash Cycle
• Using Improvements to Financial Systems to Improve Cash Flow

Cash Flow Planning and Forecasting 

• Approaches to Managing Cash Resources
• Cash Flow Forecasting Methods
• An Integrated Approach to Risk Management
• Techniques for Managing Risk
• Building a Key Driver Cash Flow Forecast
• Sensitivity Testing Cash Flow Forecasts

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