While working capital management is a component of all businesses daily practices, COVID-19 has highlighted the importance of effective strategies for cash management. This Value Paper outlines guidance for how companies can free up capital in the short term to confront COVID-19 related disruptions to cash-flow and also offers principled strategies for how companies can improve their working capital processes in the short, medium, and long-term.

Specifically, this paper reviews the available levers for improving processes in the cash-conversion cycle and provides suggestions for increasing supply chain visibility, improving business practices surrounding accounts payable and receivable, and provides a framework for transforming basic working capital management into a risk-reduction strategy.