Trapped! Why resolving the relationship between sustainability, suppliers and payments is the key to unlocking billions in working capital for retail

OVERVIEW

Analysis of just 12 leading UK retailers across categories with revenue over £1B has highlighted that a one-day improvement in payables, receivables and inventory would release a staggering combined total £1.2B of working capital.

Cash is king once again in the sector, and the whole value chain needs to take note. Under persistently challenging trading conditions and with elevated interest rates, making the most efficient use of available cash is more critical than ever. Some headline figures can look encouraging, but looking below the surface, we see different stories within the finance and supply chain dynamics that drive working capital.

Given all this and the competitive, low-margin nature of the sector, we need to be talking about partnerships, new dynamics, sustainability and resilience. It’s a lot. Where do you start?

• How can UK retailers better manage their working capital to enable investment in innovation, growth, customer experience and shareholder returns?

• How do you remodel partnerships to work more closely with your supply chain to improve sustainability and resilience?

• How can you champion sustainability and prompt payment to become the buyer of choice whilst not disadvantaging suppliers?