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Optimizing Working Capital Management in Supply Chain Finance: A Multi-Dimensional Approach

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  • N. Sureshkumar PP Narayanan
  • Farha Ghapar
  • Li Lian Chew
  • Veera Pandiyan Kaliani Sundram
  • Umahdevi Jayamani
  • Azlina Muhammad

Abstract

The efficient management of working capital is crucial for businesses to sustain operations, improve financial performance, and enhance competitiveness in today's dynamic and globalized supply chains. Supply chain finance, an emerging field that focuses on optimizing financial flows and relationships within supply chains, offers opportunities for businesses to improve working capital management. This research aims to explore the multi-dimensional aspects of working capital management in the context of supply chain finance and propose strategies for optimizing financial performance. By examining the interplay between cash flow, inventory management, and accounts receivable/payable, this study will provide insights into effective working capital management practices that can be implemented across different stages of the supply chain. Through a simple desktop research and literature survey, this research will contribute to the existing body of knowledge on supply chain finance and provide practical recommendations for businesses seeking to enhance their financial performance through optimized working capital management.

Suggested Citation

  • N. Sureshkumar PP Narayanan & Farha Ghapar & Li Lian Chew & Veera Pandiyan Kaliani Sundram & Umahdevi Jayamani & Azlina Muhammad, 2024. "Optimizing Working Capital Management in Supply Chain Finance: A Multi-Dimensional Approach," Information Management and Business Review, AMH International, vol. 16(2), pages 44-52.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:2:p:44-52
    DOI: 10.22610/imbr.v16i2(I)S.3767
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    References listed on IDEAS

    as
    1. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    2. Azlina Muhammad & Babudass M. Naidu & Veera Pandiyan Kaliani Sundram & Muhammad Zaly Shah Muhammad Hussain & Li Lian Chew & Faizatul Akmam Amirrudin, 2023. "Sustainable Waste Management in Malaysia: Leveraging Supply Chain Solutions for a Greener Future," Information Management and Business Review, AMH International, vol. 15(3), pages 147-154.
    3. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
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