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Working capital managementHow are the Nordics performing
Overall there was an improvement in days working capital (DWC) of 68 or 5 days from 2008ndash2013
We studied the annual reports and other publicly available information of over 400 organisations to find out
Performance varied by industry
Transportation improved by 52
from 57 days to 27 days
Process industriesimproved by 23 from 113 days to
87 days
Consumer servicesimproved by 28 from 48 days to
34 days
Communicationsimproved by 30 from 20 days to
14 days
Best performing industries
Energy minerals worsened by 86
from 7 days to 13 days
Utilitiesworsened by 35
from 31 days to 42 days
Health servicesworsened by 38
from 37 days to 51 days
Industrial servicesworsened by 52
from 43 days to 66 days
Worst performing industries
Some sectors fared less well
There was a broad spread of DWC starting figures in 2008 ranging from 100 days to fewer than 10 days
Where you start matters
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Overall there was an improvement in days working capital (DWC) of 68 or 5 days from 2008ndash2013
We studied the annual reports and other publicly available information of over 400 organisations to find out
Performance varied by industry
Transportation improved by 52
from 57 days to 27 days
Process industriesimproved by 23 from 113 days to
87 days
Consumer servicesimproved by 28 from 48 days to
34 days
Communicationsimproved by 30 from 20 days to
14 days
Best performing industries
Energy minerals worsened by 86
from 7 days to 13 days
Utilitiesworsened by 35
from 31 days to 42 days
Health servicesworsened by 38
from 37 days to 51 days
Industrial servicesworsened by 52
from 43 days to 66 days
Worst performing industries
Some sectors fared less well
There was a broad spread of DWC starting figures in 2008 ranging from 100 days to fewer than 10 days
Where you start matters
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Performance varied by industry
Transportation improved by 52
from 57 days to 27 days
Process industriesimproved by 23 from 113 days to
87 days
Consumer servicesimproved by 28 from 48 days to
34 days
Communicationsimproved by 30 from 20 days to
14 days
Best performing industries
Energy minerals worsened by 86
from 7 days to 13 days
Utilitiesworsened by 35
from 31 days to 42 days
Health servicesworsened by 38
from 37 days to 51 days
Industrial servicesworsened by 52
from 43 days to 66 days
Worst performing industries
Some sectors fared less well
There was a broad spread of DWC starting figures in 2008 ranging from 100 days to fewer than 10 days
Where you start matters
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Energy minerals worsened by 86
from 7 days to 13 days
Utilitiesworsened by 35
from 31 days to 42 days
Health servicesworsened by 38
from 37 days to 51 days
Industrial servicesworsened by 52
from 43 days to 66 days
Worst performing industries
Some sectors fared less well
There was a broad spread of DWC starting figures in 2008 ranging from 100 days to fewer than 10 days
Where you start matters
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
There was a broad spread of DWC starting figures in 2008 ranging from 100 days to fewer than 10 days
Where you start matters
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
So what makes a top performing company
What do they do differently
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
By focusing on 15 of the top performing companies we learned
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on four key strategies
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Made working capital management a long-term strategic plan supported bybull Strong leadershipbull Clear communicationbull Employee engagement
Top performing companies
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Amer Sports and Electrolux linked managersrsquo pay to working capital targets
26
For examplehellip
Amer Sports showed an improvement of 26 in DWC mdash from 151 to 112 days mdash between 2008 and 2013
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Optimised inventory management bybull Centralising warehousingbull Simplifying stock keepingbull Using different production models
Top performing companies
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
24
Clas Ohlson improved inventory turnover by 7 days
For example
Clas Ohlson reduced its DWC figure by 24 mdash from 58 to 44 days mdash between 2008 and 2013
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Streamlined their supply chain management bybull Harmonising payment termsbull Minimising the range of suppliersbull Focusing on in-house manufacturing
Top performing companies
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Fiskars made supply chain management a focus area in 2008 and ultimately made the overall supply chain demand-driven
For example
Fiskars improved DWC by 31 mdash from 117 to 81 days mdash between 2008 and 2013
31
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Prioritised receivables management bybull Optimising payment termsbull Renegotiating supplier contractsbull Improving collections
Top performing companies
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Millicom International Cellular reduced receivables turnover by 6 days
For example
28
Millicom International Cellular improved DWC by 28 mdash from 26 to 16 days mdash between 2008 and 2013
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
Regardless of industry revenue or DWC starting figure these companies show improvement over a five-year period is possible
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
To find out more about making working capital management more efficient download the full report insightsnordeacomgowcm
