Working Capital Management

Working Capital Management
Working Capital Management


Working capital is the engine that drives short term liquidity, bolsters cash, and lifts up the bottom line. Companies that focus on optimizing working capital are able to be more responsive to customer needs and have less reliance on debt.  When managed poorly, organizations can quickly find themselves weighed down by financial burdens and are less agile to move with the market.  


Although the math behind Working Capital Management improvements is straightforward, the complexities and scale of today’s business environment pose significant challenges to managing cash flow often times forcing companies into uncomfortable positions in order to effectively and efficiently satisfy the needs of themselves as well as those of their customers and suppliers. 


Protiviti’s Working Capital Management Solution focuses on delivering innovative solutions to assist companies across all industries with improving processes, enhancing revenue, and reducing costs.  Our proven methodology deeply dives into the value drivers of Procure-to-Pay, Order-to-Cash, and Inventory to fully optimize a company’s working capital management function.


Reaching an optimal solution for all parties involved typically requires an extensive understanding of not only the specific business processes but also the maturity your organization.  We achieve a deeper understanding of your situation by focusing on six elements of infrastructure - strategies and policies, business processes, people and organization, management reports, information methodology and tools, and systems and data.  We uncover opportunities for you through the use of proprietary, industry-leading web-based tool, advanced data analytics, understanding of key value drivers, and deep subject matter expertise.  We tailor solutions that leverage best practices to analyze current working capital opportunities and implement improvements across the six elements mentioned to free up cash, generate significant savings, and positively impact the bottom line. 


Protiviti assists you with improving working capital conditions across three value drivers.


  • Decelerating and harmonizing supplier payment terms.
  • Reducing processing costs through consolidation of payments, decreasing voided payment and/or credit volume, and increasing utilization of more efficient payment methods.
  • Optimizing payment processing functions to reduce early / late paid invoices, maximize realization of discounts, and mitigate risks related to the processing of duplicate payments.

Order-to Cash

  • Accelerating customer payment terms and enforcing late payment penalties.
  • Decreasing processing costs through consolidation of invoices, automation of processes, reduction of cancelled invoice and/or volume of credits issued, and instilling efficient customer payment methods.
  • Improving monitoring capabilities and/or procedures around customer risk management and payment collection activities.  


  • Decreasing ordering, holding/carrying and shortage costs through stock versus non-stock determination, optimizing stocking levels, and inventory standardization.
  • Improving inventory control through segmentation, cycle counting, and determining optimal physical storage requirements and locations.
  • Reducing processing costs, avoiding loss of business and stock outs through the establishment of metrics and KPIs. 

We achieve these results through the following solutions:

To assist our clients in understanding and improving current working capital conditions, Protiviti offers the following services:

  • Working Capital Optimization / Cash Flow Management
  • Contract and Pricing Compliance
  • Accounts Payable Recovery
  • Spend Analytics and Strategic Sourcing