21 best working capital management tips strategies techniques 1 manage procurement and inventory effectively keeping track of the amount of inventory you have at any given time is one of the hallmarks of an effective working capital management. Efficient working capital management techniques are those that compress the operating cycle the length of the operating cycle is equal to the sum of the lengths of the inventory period and the receivables period just in time inventory management technique reduces carrying costs by slashing the time that goods are parked as inventories. With such trends and benefits of positive working capital in mind we have come up with a list of 5 tips for effectively managing working capital tips for effectively managing working capital 1 manage procurement and inventory prudent inventory management is an important factor in making the most of your working capital excessive stocks can place a heavy burden on the cash resources of . Working capital management techniques such as the intersection of carrying cost and shortage cost working capital financing policy cash budgeting eoq and jit are applied to manage different components of working capital like cash inventories debtors financing of working capital etc
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