Working capital management

More financial freedom thanks to working capital management

Many large companies tie up too much capital in work processes. With working capital management (WCM), PostFinance helps companies to create financial flexibility by taking account of process-related and logistical aspects.

Too many goods in stock. Not issuing invoices until weeks after the service has been provided. Paying receivables too soon. Companies can quickly tie up anything up to a third more capital in work processes or products than is actually necessary. This is where PostFinance's integrated approach to working capital management comes in: it guides company decisions, processes and practices to ensure that as little non-interest bearing capital as possible is tied up in current assets. Warehouses should not have excess stocks, customers should receive their invoices quickly, and liabilities with suppliers should be paid when the time is right. This allows companies to improve their liquidity and optimize cash flow. They also save money because improved processes save time. And, they can use the freed-up capital for major new investments.

Here's how it works. A specialized Group-wide team of consultants analyses all areas of the business, such as accounts payable and receivable management, transport and inventory management and cash management, at the customer's premises. Using a tool developed jointly with the University of St. Gallen, key figures and processes are compared with those of relevant competitors. The solutions are modular: customers can completely outsource single or comprehensive process steps in their value chain to PostFinance and other Swiss Post units, from purchasing to transport, storage, financing, delivery, invoicing, payment processing and document and dialogue solutions.

Wander AG

In 2013, as part of a PostFinance initiative, Swiss Post conducted a comprehensive analysis for the food manufacturer Wander AG. Based on the benchmarks and analyses of the essential WCM drivers and processes, potential areas for optimization were identified. The options for action to optimize working capital and the related processes were discussed with the company and offered in a tailored solution package.