Working capital management: an urgent need to refocus

Argues that attempts to improve working capital by delaying payment to creditors is counter‐productive to individuals and to the economy as a whole. Claims that altering debtor and creditor levels for individual tiers within a value system will rarely produce any net benefit. Proposes that stock reduction generates system‐wide financial improvements and other important benefits. Urges those organizations seeking concentrated working capital reduction strategies to focus on stock management strategies based on “lean supply‐chain” techniques.