Week 9 Question 1 Working Capital Management - Assignment Example

WORKING CAPITAL MANAGEMENT al Affiliation) With the expansion of businesses in both the scope and complexity, businesses have realized the importance of cutting-edge technologies to enable them manage working capital. Technological providers like Optian, SmartOps, Logic Tools, and i2 have developed solutions that optimize inventory count. This is by offering businesses the ability to calculate the safety stock inventory. This in turn, ensures that businesses have the correct amount of inventory at the right place.

These technologies ensure that there is working capital optimization (Partridge, 2007). Other technologies for planning and scheduling that are offered by companies like JDA, Logility, and Manhattan Associates offer good solutions. These are especially in the computation of safety stocks. Survey respondent tools from Akzo Nobel helps in identifying obsolete inventory. Looking at cash management, businesses find themselves handling a number of huge cash transactions. These transactions include collection of receivables and making payments.

Managing these processes ensure that the business grows and succeeds in the industry. This is because cash management technologies reduce errors that result from manually managing cash. Tellermate electronic cash counters are examples of such technology. This technology is especially useful for businesses that handle a lot of cash. This is because they reduce the time that it takes to count cash and also reduces errors (Tellermate, 1996). There are other technologies that would enhance working capital management.

However, it is critical to ensure that the technology that the business plans to use enhances the working capital. This is mainly by looking at inventory optimization where the technology should help the business is optimizing inventory. The technology should also be able to measure the business working capital and be able borrow ideas from companies that do well in managing working capital. This is so as to be able to improve the working capital in the business (Preve, 2010).BibliographyPartridge, A. R. (2007, 08).

Complex Technology Optimizes Basic Concepts. Retrieved 03 06, 2013, from Inbound Logistics: http://www.inboundlogistics.com/cms/article/complex-technology-optimizes-basic-concepts/Tellermate. (1996). About Us. Retrieved 03 06, 2013, from Tellermate Integrated and Intelligent Cash Management Technologies.: http://www.retailsolutionsonline.com/ecommcenter.mvc/tellermatePreve, L. A., & Sarria-Allende, V. (2010). Working capital management. New York: Oxford University Press.