Towards Inter-organizational Working Capital Management

Working capital is an investment which is tied up into the inventories and accounts receivable and which is released with accounts payable. Due to the current business landscape with tightened financial conditions and finance markets, organizations emphasize efficient working capital management. With efficient working capital management, a company can reduce the need of finance, free up cash, increase profitability, improve liquidity, increase the efficiency of operations, and decrease (financing) costs. From the perspective of an individual company, efficient working capital management means decreasing inventory levels by shortening the cycle time of inventories, decreasing accounts receivable by shortening the trade credit terms and effective collection procedures, and increasing the level of accounts payable by paying the suppliers later. From an inter-organizational perspective, however, working capital should not be sub-optimized by a single company but holistic view to working capital management through the supply chain should be adopted to create value and improve performance together. The purpose of this research is to take academic research as well as practical management towards inter-organizational working capital management. The thesis discusses the benefits as well as mechanisms of working capital management in the inter-organizational context and has two main objectives: (1) to examine the effect of inter-organizational working capital management on performance in the value chain context and (2) to develop models of working capital management for internal as well as inter-organizational value chains. The results of the archival research conducted in the value chain of the pulp and paper industry and the value chain of the automotive industry indicate that companies can increase relative profitability by managing working capital comprehensively by taking into account all three components, and holistically though the value chain. Companies in the value chain benefit from different strategies in working capital management depending on the position of the company in the value chain. This can be taken into account in inter-organizational working capital management. The effects of inter-organizational working capital management actions on the financing costs of working capital were studied via simulations. Simulations also show that the value chain and individual companies benefit from an inter-organizational view to working capital management. Inter-organizational working capital management actions include for example: shortening the cycle time of inventories, reducing product costs, shifting inventories, shortening payment terms, and considering the cost of capital. The thesis also provides solutions for the practical requirements for tools to control working capital. The design science part of the research introduces the adjusted cash conversion cycle (ACCC) model for internal value chains, as well as models for working capital management in the inter-organizational value chain context: the working capital management model (WCMM) and the financial cycle time model (FCTM) designed in corporation and product levels respectively. This research contributes to literature on working capital management and interorganizational accounting. The research gives a holistic, inter-organizational view to the management of working capital. It advances the knowledge in working capital management on operational level, increases knowledge in the recently risen theme of supply chainoriented, collaborative working capital management, combines management accounting research with supply chain management research, and contributes to the demand of practical inter-organizational accounting methods. In addition, the research has strong practical focus as new managerial methods are introduced.

Informe de la Reunión Interinstitucional para Coordinar la Ejecución del Programa de Trabajo del CDCC, Nueva York, 28-30 junio 1976 = UN Inter-Agency Meeting on Co-ordination for Implementation of the Work Programme of the CDCC, New York, 28-30 June 1976

El símbolo ECLA/POS/76/10 corresponde al documento en inglés solamente

UN Inter-Agency Meeting on Co-ordination for Implementation of the Work Programme of the Caribbean Development and Co-operation Committee. Specific activities: proposals by agencies

Informa sobre las actividades realizadas por el OCMI, OIT, UNCTAD, UPU, UNICEF y Centro de Vivienda, Construcción y Planificación, en relación a las prioridades del CDCC. Describe las actividades específicas propuestas por OCMI, CET y UIT.

Informe del Grupo de Trabajo Intersecretarial sobre Recursos Hídricos en América Latina = Report of the Inter-Secretariat Working Group on Water Resources in Latin America

Incluye Bibliografía

Informe del Grupo de Trabajo Intersecretarial sobre Recursos Hídricos en América Latina = Report of the Inter-Secretariat Working Group on Water Resources in Latin America

Informe de la reunion sobre recursos hidricos cuyos puntos principales fueron: el examen y coordinacion de las actividades desarrolladas en el terreno y de las realizadas de acuerdo al programa ordinario en la esfera de los recursos hidricos, y arreglos para examinar la marcha de la aplicacion del Plan de Accion de Mar del Plata. Incluye temario, resumen de los debates, lista de participantes y de documentos.