The General Model of Working Capital Management

This book provides a comprehensive framework for managing working capital, trade credit, and supply-chain finance, with case studies and managerial lessons to optimize cash flow. It covers topics such as market power, value extraction, just-in-time strategies, and the greening of supply chains, and is accessible to a broad audience.

Format: Paperback / softback
Length: 265 pages
Publication date: 19 August 2023
Publisher: Springer Verlag, Singapore

This comprehensive book seamlessly integrates Working Capital Management, Trade Credit, and Supply-Chain Finance within a unified framework, supported by an abundance of case studies, including a prominent example that demonstrates how enhanced working capital practices have resulted in over $1 billion in savings for a large corporation. The General Model of Working Capital Management brings together the diverse aspects of these subjects, spanning finance, accounting, operations, marketing, and more, into a cohesive whole. It provides an extensive range of material, making it accessible to a wide audience, from introductory undergraduate courses to business executives. Through a series of captivating case studies, the book explores a diverse spectrum of scenarios, ranging from the small business owner who shed tears in an executive class after realizing the catastrophic impact of poor working capital management on his enterprise to the significance of Amazon's and Tesco's negative cash conversion cycle in their expansion efforts. Formal models encompass the interplay between market power and value extraction through adjustments in payment terms for consumers and suppliers, in-kind finance, and trade credit in the context of asymmetric competing retailers. Furthermore, the book delves into the development of just-in-time strategies, which emerged under capital constraints, aimed at limiting working capital investments. These strategies go beyond mere pursuit of production efficiency and encompass a broader perspective. Lastly, the chapter on the greening of supply chains sheds light on the crucial role that companies can play in mitigating climate change by extracting resources from their supply chain or acting as trade credit lenders. By integrating these three critical components, the book offers a holistic and practical approach to managing working capital, trade credit, and supply-chain finance, enabling organizations to optimize their financial performance and contribute to a more sustainable future.

Weight: 438g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811933363
Edition number: 1st ed. 2022