Tuesday 27 December 2022

The future of Working Capital Management: The predictions for 2023 and beyond

It is difficult to make specific predictions about the future of working capital management, as it is affected by a variety of internal and external factors. 

However, here are a few possible trends that could shape the future of working capital management:


Increased focus on digitalization: 

The use of digital technologies, such as blockchain and artificial intelligence, is likely to continue to grow in the field of working capital management. These technologies can help improve efficiency, reduce errors, and provide greater visibility into the working capital management process.


Greater emphasis on sustainability: 

As concerns about the environment and social responsibility continue to rise, companies may place a greater emphasis on sustainable practices in their working capital management. This could involve using more environmentally-friendly suppliers, reducing waste, and optimizing inventory levels to minimize waste.


Continued impact of global events: 

The COVID-19 pandemic has had a significant impact on working capital management, and similar global events could continue to shape the field in the future. Companies may need to be more agile and adaptable in their working capital management in order to respond to unexpected events.


Increased use of data analytics: 

The growing availability of data and the development of advanced analytics tools are likely to lead to an increased use of data in working capital management. Companies may use data to make more informed decisions about inventory levels, payment terms, and other aspects of working capital management.


Overall, the future of working capital management is likely to be shaped by a combination of technological advancements, changing global economic conditions, and a focus on sustainability and social responsibility.


Ahsan Tariq
Preston university
Department of management science

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