Working Capital Study 2021/2022

From recovery to growth in the face of supply chain instability

The corporate focus is shifting from stabilise and survive to recovery and growth. But unstable supply chains are disrupting operations and heightening the pressure on working capital, the cash needed to run day-to-day operations.

As the pandemic exposed the slow reaction of supply chains to external shocks, this has led to a significant rise in net working capital (NWC), the capital efficiency has to be front of mind as we go into 2022.

The key findings of our report highlight:

• The pandemic resulted in a significant rise in NWC and high debt levels remain a concern
• Slow reaction of supply chains is driving both excess and insufficient stock
• Further stress on working capital comes from fragile supply chains and the list of drivers is growing
• 63% of respondents in manufacturing rank supply chain issues as a key concern

We can help you to:

• identify and realise cash and cost benefits across the end-to-end value chain improve operational processes that underpin the working capital cycle
• implement digital working capital solutions and data analytics
• achieve cash conservation in crisis situations
• create a 'cash culture' and upskill the organisation to adapt to the current situation
• create short-term cash flow forecasting and related action plans