1.
Working capital management
How are the Nordics performing?

2.
Overall, there was an improvement in days
working capital (DWC) of 6.8% or 5 days
from 2008–2013.
We studied the annual reports and other publicly
available information of over 400 organisations
to find out...

3.
Performance varied by industry
Transportation
improved by 52%,
from 57 days to
27 days
Process industries
improved by 23%,
from 113 days to
87 days
Consumer services
improved by 28%,
from 48 days to
34 days
Communications
improved by 30%,
from 20 days to
14 days
Best performing industries

4.
Energy minerals
worsened by 86%,
from 7 days to
13 days
Utilities
worsened by 35%,
from 31 days to
42 days
Health services
worsened by 38%,
from 37 days to
51 days
Industrial services
worsened by 52%,
from 43 days to
66 days
Worst performing industries
Some sectors fared less well

5.
There was a broad spread of DWC starting
figures in 2008, ranging from 100 days to
fewer than 10 days.
Where you start matters

6.
So what makes a top performing company?
What do they do differently?

7.
By focusing on 15 of the top performing
companies we learned...

8.
Make working capital a strategic priority
Optimise inventory management
Streamline supply chain management
Focus on receivables management
Top performing companies focus on
four key strategies...

9.
Made working capital management a
long-term strategic plan, supported by:
• Strong leadership
• Clear communication
• Employee engagement
Top performing companies...

10.
Amer Sports and Electrolux linked managers’
pay to working capital targets.
26%
For example…
Amer Sports showed an
improvement of 26% in DWC
— from 151 to 112 days —
between 2008 and 2013

11.
Optimised inventory management by:
• Centralising warehousing
• Simplifying stock keeping
• Using different production models
Top performing companies...

12.
24%
Clas Ohlson improved inventory turnover
by 7 days.
For example...
Clas Ohlson reduced its
DWC figure by 24% — from
58 to 44 days — between
2008 and 2013

13.
Streamlined their supply chain
management by:
• Harmonising payment terms
• Minimising the range of suppliers
• Focusing on in-house manufacturing
Top performing companies...

14.
Fiskars made supply chain management a focus
area in 2008 and ultimately made the overall
supply chain demand-driven.
For example...
Fiskars improved DWC by
31% — from 117 to 81 days
— between 2008 and 2013
31%

15.
Prioritised receivables management by:
• Optimising payment terms
• Renegotiating supplier contracts
• Improving collections
Top performing companies...

16.
Millicom International Cellular reduced
receivables turnover by 6 days.
For example...
28%
Millicom International Cellular
improved DWC by 28% —
from 26 to 16 days —
between 2008 and 2013

17.
Regardless of industry, revenue or
DWC starting figure, these companies
show improvement over a five-year
period is possible.

18.
To find out more about making
working capital management
more efficient, download the
full report:
insights.nordea.com/go/wcm/