Question

In Finance in action, what's the impact of technology on working capital management?

Answer 1

Working capital management mean management of short term obligation thet is inventory management, receivables management and payable management.

Technology helps the comapny in managing and tract inventory and account receivables. Technology helps in managing working capital in following ways:

1. technology helps in Reduce holding period by using just in time inventory system or various inventory management technique.

2. Reduce Collection period from customer by offering some other benefit like cash discount.

3. Try to increase payment period