Sound inventory management pivotal to companies’ working capital needs

Sound inventory management pivotal to companies' working capital needs

While Days Sales Outstanding increased by 2 days globally in 2017 because of accelerating growth worldwide, companies’ Working Capital Requirement leveled off at 69 days, due to sound inventory management. Indeed, WCR strongly declined in China (-10 days), Brazil (-11) and Russia (-15), as well as in most of countries throughout Eastern Europe and Africa and the Middle-East. This drop mainly stems from a sharp reduction in stock levels (-10 days on average) reflecting adjustments in inventory value and more importantly progress in supply chain efficiencies.

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