Working Capital Optimizer

Working Capital Optimizer: practical plan

Working-capital review

Cash conversion cycle

Using the supplied figures: 52 inventory days + 48 receivable days − 35 payable days =

65 days. This is a directional measure; validate definitions, seasonality and period consistency.

Receivables

Segment overdue invoices by customer, dispute reason, terms and collection owner. Improve invoice accuracy and reminders. Do not impose unapproved terms or punitive tactics.

Inventory

Identify slow-moving and safety-stock items, supplier lead-time variability, minimum order quantities and service-level commitments. Reduce excess through better ordering while protecting availability.

Payables

Review invoice matching, early-payment discounts, due dates and supplier terms. Avoid delaying undisputed payments beyond agreed terms or harming critical supplier relationships.

Measures

Track DSO, DIO, DPO, cash conversion cycle, stockouts, overdue invoices, supplier complaints and cash released.

Actions

Prioritize process fixes with owners and quantify cash impact using actual balances. Model downside effects and involve finance/procurement before changing customer or supplier terms.

Measurement and review

Record the baseline, source, date range, denominator and owner. Use one primary measure plus quality guardrails; compare like-for-like cohorts and disclose missing data. Treat estimates as scenarios, not observed outcomes.

Risks and controls

Check relevance, consent, disclosure, workload and downside before scaling. Keep an evidence trail, obtain human review for material commitments, and pause if trust, quality or compliance signals deteriorate.

Next steps

1. Confirm the goal, audience and available capacity.
2. Gather the minimum evidence for a first test.
3. Assign an owner, budget and review date.
4. Run a small pilot, record outcomes and decide whether to iterate, expand or stop.