In today’s dynamic business environment, companies need a resilient liquidity position to fund growth, absorb volatility, and maintain operational agility. Yet most organizations hold 10 to 25% more cash in working capital than required. This cash is trapped in receivables, payables, inventory, and non‑trade processes.

Releasing this cash is often the fastest and cheapest source of funding. It enables organizations to invest in transformation, reduce debt, pursue acquisitions, or return value to shareholders.

Working capital optimization also drives operational excellence. Leaner processes, stronger master data, and more disciplined ways of working improve customer and supplier experience, reduce errors, and lower the Cost to Serve (CTS).

Sustainable working capital improvement is not a one‑time exercise. It requires cross-functional ownership, clear governance, robust data, and embedding cash awareness into daily decision-making.

What leading organizations achieve

Companies that transform their working capital typically unlock:

3-6% of revenue in cash release
20-40% reduction in overdue receivables
10-20 days improvement in payables and receivables cycles
15-30% reduction in excess and obsolete inventory
Improved EBITDA, ROCE, and balance sheet strength
Lower financing costs and a reduced dependency on external liquidity
More resilient supply chain with stronger customer and supplier relationships

These improvements create real and immediate financial impact while reinforcing long-term operational health.

How KPMG helps you to optimize working capital

At KPMG, we bring a data-driven, technology-enabled and implementation-focused approach to working capital transformation. Our teams combine deep functional expertise across finance, procurement, sales, operations, supply chain, and legal with advanced analytics, artificial intelligence (AI) and proven change management.

Our services

Our diagnostic assessment provides rapid clarity on where cash is locked and how much can realistically be released.

Within a matter of days, we deliver:

A deep analysis of accounts receivable, accounts payable, and inventory cycles
Benchmarking against industry peers and leading practices
Quantified cash release opportunities
Root-cause insights via stakeholder interviews and process reviews
Clear segmentation of quick wins and strategic initiatives

Using KPMG’s Elevate Analytical Building Blocks (ABBs), we process millions of rows of transactional data to reveal inefficiencies that traditional reporting does not capture.

Your diagnostics become the catalyst for action. They provide fact-based insights and a case for change that aligns the organization.

Following the diagnostic, we co-develop a detailed and actionable implementation plan. This includes:

Prioritization based on value, complexity, and timeline
Defined owners, roles, milestones, and governance
A clear business case with quantified benefits
Alignment across Finance, Operations, Procurement, Sales, IT, and Legal
Early focus on initiatives that deliver fast impact

Our planning ensures momentum, accountability, and organizational buy-in. It lays the groundwork for a successful transformation.

We partner with your teams to execute improvements and embed better ways of working into the business.

Typical areas include:

Reducing overdue receivables and improving collections
Harmonizing and renegotiating payment terms
Enhancing invoicing, billing accuracy, and dispute management
Strengthening payables compliance and optimizing payment cycles
Inventory optimization, including demand planning, safety stock, and SKU rationalization
Supply Chain Finance or Supply Chain Factoring (SCF), and financial solution support, including accounting advice

We work hands-on to drive results, provide guidance, and ensure that improvements stick. This turns a strategy into sustainable value.

To sustain improvements, a real-time overview is essential. We design dashboards and governance frameworks that enable:

Continuous KPI monitoring
Early detection of variances
Clear accountability and performance ownership
Data-driven decision-making across functions

Our tooling integrates with existing ERP and reporting systems. This ensures transparent, intuitive, and actionable insights.

True working capital excellence requires a shift in mindset. We help clients embed cash consciousness throughout the organization by:

Establishing policies and guardrails
Providing training and capability building
Setting incentives aligned with liquidity outcomes
Enhancing cross-functional collaboration
Engaging leadership to champion cash discipline

A strong working capital culture supports long-term financial health and operational excellence.

Why KPMG

Deep industry and functional expertise
Proprietary analytics, leading practices and benchmarks
Hands-on support, from diagnostics to implementation
Proven track record of delivering sustainable cash release
Global network combined with local expertise

Working capital is more than a balance sheet metric. It is a strategic enabler.
We help you to unlock cash, improve resilience, and accelerate performance.