Skip to main content
SpringerLink
Log in

Relevance of WCM and Its Weaknesses

  • Chapter
  • First Online:
Book cover Supply Chain Finance Solutions

Part of the book series: SpringerBriefs in Business ((BRIEFSBUSINESS))

  • 3912 Accesses

Abstract

Working capital and the cash-to-cash cycle are important indicators to reveal supply chain efficiencies. Thereby, the objective is to balance and optimize the amount of working capital to successfully manage a company. Until recently traditional approaches were used to improve working capital mainly focusing on a single company. In contrast, the Supply Chain Finance approach provides opportunities to improve working capital for all parties involved in a supply chain.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 49.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    "Economic Value Added" (EVA®) is a registered trademark of Stern Stewart & Co

References

  • Bhalla VK (2005) Working capital management. Anmol Publications, New Delhi

    Google Scholar 

  • Callioni G, de Montros X, Slagmulder R, van Wassenhove L, Wright L (2005) Inventory-driven costs. Harvard Bus Rev 83(3):135–140

    Google Scholar 

  • Cheng NS, Cravens K, Lamminmaki D, Pike R (2005) Trade credit terms: asymmetric information and price discrimination evidence from three continents. J Bus Finance Account 32(5/6):1197–1236

    Google Scholar 

  • Emery DR, Finnerty JD (1997) Corporate financial management, 2nd edn. Prentice Hall, Upper Saddle River

    Google Scholar 

  • Farris MT II, Hutchison PD (2003) Measuring cash-to-cash performance. Int J Logist Manag 14(2):83–91

    Article  Google Scholar 

  • Flood M (1952) On game-learning theory and some decision-making experiments. RAND research paper

    Google Scholar 

  • García-Teruel PJ, Martínez-Solano P (2007) Effects of working capital management on SME profitability. Int J Manag Finance 3(2):164–177

    Google Scholar 

  • Hofmann E, Locker A (2009) Value-based performance measurement in supply chains - a case study from the packaging industry. In: Production Planning & Control 20(1):68–81

    Google Scholar 

  • Hofmann E, Kotzab H (2010) A supply chain-oriented approach of working capital management. J Bus Logist (forthcoming) 31(2):305–330

    Google Scholar 

  • Hofmann E, Maucher D, Piesker S, Richter S (2011) Ways out of the working capital trap: empowering self-financing growth through modern supply Management. Springer

    Google Scholar 

  • Howorth C, Westhead P (2003) The focus of working capital management in UK small firms. Manag Account Res 14(2):94–111

    Article  Google Scholar 

  • Jose ML, Lancaster C, Stevens JL (1996) Corporate returns and cash conversion cycles. J Econ Finance 20(1):33–46

    Article  Google Scholar 

  • Mian SL, Smith CW (1992) Accounts receivable management policy: theory and evidence. J Finance 47(1):169–200

    Article  Google Scholar 

  • Moss JD, Stine B (1993) Cash conversion cycle and firm size: a study of retail firms. Manag Finance 19(8):25–38

    Google Scholar 

  • Ng CH, Smith JK, Smith RL (1999) Evidence on the determinants of credit terms used in interfirm trade. J Finance 54(3):1109–1129

    Article  Google Scholar 

  • Pike R, Cheng NS, Cravens K, Lamminmaki D (2005) Trade credit terms: asymmetric information and price discrimination evidence from three continents. J Bus Finance Account 32(5):1197–1236

    Article  Google Scholar 

  • PricewaterhouseCoopers (2009) Demystifying supply chain finance—insights into the what, why, how, where and who. http://www.pwc.com/en_US/us/issues/surviving-the-financial-downturn/assets/supply_chain_finance.pdf. Accessed 09 Apr 2010

  • Rafuse ME (1996) Working capital management. An urgent need to refocus. Manag Decis 34(2):59–63

    Article  Google Scholar 

  • Rappaport A (1999) Shareholder value. Schäffer-Poeschel Verlag, Stuttgart

    Google Scholar 

  • Reason T (2005) Capital ideas: the 2005 working capital survey. CFO Mag 21(12):88–92

    Google Scholar 

  • Reider R, Heyler PB (2003) Analyzing sales for better cash flow management. J Corp Account Finance 15(1):15–25

    Article  Google Scholar 

  • Richards VD, Laughlin EJ (1980) A cash conversion cycle approach to liquidity analysis. Financial Manag 9(1):32–38

    Article  Google Scholar 

  • Ross SA, Westerfield RW, Jaffe J (2005) Corporate finance, 7th edn. McGraw-Hill, Boston

    Google Scholar 

  • Scherr FC (1989) Modern working capital management—text and cases. Prentice-Hall, Englewood Cliffs

    Google Scholar 

  • Shin H-H, Soenen L (1998) Efficiency of working capital management and corporate profitability. Financial Pract Educ 8(2):37–45

    Google Scholar 

  • Shulman J, Cox R (1985) An integrative approach to working capital management. J Cash Manag 5(6):64–67

    Google Scholar 

  • Soenen LA (1993) Cash conversion cycle and corporate profitability. J Cash Manag 13(4):53–58

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Chair of Logistics Management (LOG-HSG), University of St.Gallen, Dufourstrasse 40a, 9000, St. Gallen, Switzerland

    Erik Hofmann

  2. Sumitomo Mitsui Banking Corporation Europe Ltd, 99 Queen Victoria Street, EC4V 4EH, London, UK

    Oliver Belin

Authors
  1. Erik Hofmann
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Oliver Belin
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Erik Hofmann .

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Hofmann, E., Belin, O. (2011). Relevance of WCM and Its Weaknesses. In: Supply Chain Finance Solutions. SpringerBriefs in Business. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17566-4_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-17566-4_2

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-17565-7

  • Online ISBN: 978-3-642-17566-4

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation