Notes on "Cash and Working-Capital Discipline" (CFO research services)

Cash and Working-Capital Discipline
CFO research services in collaboration with American Express

Creating a secure foundation for growth
When ready availability of credit evaporated in the recent financial crisis, midsize companies lost little time in becoming more financially disciplined. They slashed costs and paid down debt at a ferocious pace, while working to eliminate excess inventory and improve collections in a competitive buyer's market for goods and services.
Maintaining the level of discipline isn't easy.

Constant pressure on working-capital improvement
Diligence - not innovation - is the essence of working capital improvement.
Survey results suggest that midsize firms have been blocking and tackling a lot in recent years - working hard to extract payments from increasingly distressed customers, negotiate more favorable terms with suppliers, and reduce inventory levels while maintaining overall margins.

Lack of bargaining power: A challenge for midsize firms
The intense scrutiny that midsize companies are applying to their receivables flows from a simple fact: when business conditions deteriorate and a buyer's market for goods and services develops, the ability to convert receivables to cash suffers.