Saving Working Capital: 4 Ways to Improve Your Efficiency and Cash Flow

Saving Working Capital: 4 Ways to Improve Your Efficiency and Cash Flow

by Amy Julian, John Stewart
March 15, 2024

Saving working capital in turbulent economic times is every bit as obvious as seeking shelter from a storm. Insufficient money on hand may force sudden decisions, such as cuts that hamper future growth. But without proper visibility — ongoing, granular views of how money shuttles through your business — generating the efficiencies that build working capital is challenging.

This may spur your organization to develop or refine a working capital strategy, initiate real-time reporting and improve your financial forecasting proficiency. Technology offers one of the shortest paths to process efficiency, helping you sharpen business insights and improve competitiveness. With the right data-driven approach to cost, cash and capital management, you can weather volatility and position your business for future growth.

Here are four ways to start saving working capital:

  1. Technology Evaluation
  2. Human Capital Management
  3. Automation and AI
  4. Cash Flow Solutions for Operations

Evaluate Your Technology Strategy for Cost Savings

How can refreshing your technology strategy improve your working capital and set the stage for growth? Strategy and Transformation practice leaders Talbot Harty and John Stewart explain how to achieve these benefits and distill key takeaways, including:

  • Deploy efficiency tools. With the rise of generative artificial intelligence (AI), companies are paying more attention to their AI investments and evaluating tools such as chatbots to reduce IT spending and improve customer response time.

  • Align tech strategies with business goals. Explore how tighter alignment helps you optimize operations and increase financial stability. The right technology can enhance your forecasts and improve visibility into current and projected cash flow so you can make smarter financial decisions.

  • Evaluate cloud solutions for cost savings. From communications to core business applications such as data analytics, see how transitioning from on-premise solutions to cloud services can decrease costs and increase efficiency.

  • Gauge whether outsourcing makes sense. Understand how partnering with vendors and outsourcing non-core functions can increase capital savings. Does your team need to focus more on strategic planning and spend less time mired in daily operations?

People & Culture: How to Boost Capital & Staff Engagement

Workforce strategy experts Katie Hered and John Stewart explain how to apply human capital strategy and change management principles to working capital. Embrace the emerging trends in workforce optimization and learn how your teams can gather insights to boost efficiency, profitability and employee engagement.

  • Think smart about people and technology. Discover how proactive thinking about your people can improve productivity and better align your technology and process investments.
  • Focus on your team’s valuable work. Applying technology such as automation to manage daily tasks and error-checking enables teams to focus on higher-value activities.
  • Emphasize clear communication to drive change. Concentrate on effective communication and change management when introducing new technology and shifts in role responsibilities.

How Automation & AI Can Increase Working Capital

Thriving in the information age requires the ability to see what’s coming and make strategic or necessary adjustments. Partners Carmel Wynkoop and John Stewart illuminate the competitive advantages and operational efficiencies catalyzed by new forms of AI and automation.

  • Look for ways to boost productivity. See how to apply automation and AI across manual and repeatable tasks to increase cost savings and efficiency.
  • Are you seizing opportunities to differentiate? Learn why your business must adapt to the rapid change in AI technology or risk falling behind.
  • Starting small can make AI efficiencies stick. Consider how small-scale AI implementations can introduce cost savings and why gradually increasing AI and automation makes sense.

Why Cash Flow Is Essential to Operations & Distribution

Partners Amy Julian and John Stewart share strategies and practical solutions for optimizing operations and driving growth even in volatile financial times. Gaining a deeper understanding of consumer behavior, managing margin pressures and mastering cash flow forecasting can help you manage the inevitable ups and downs of today’s economy.

  • Understand current economic pressures. Examine how today’s financial realities make saving working capital and cash flow more critical than ever.
  • Get clear on your data and tighten processes. Learn how mastering your data and tightening your technical processes will improve efficiency and reduce costs.
  • Reassess your operational priorities. See why now is the time to focus on crucial working capital optimizations, including pricing, cost of goods sold and budgeting.

Get Started on Saving Working Capital

Do you know how much cash you have on hand — or how much you'll need in the future? Are your operations running as efficiently as possible? Connect with our Strategy and Transformation consultants today to assess how you can best optimize your workforce, improve processes and use technology to save working capital and boost profitability.

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