Optimizing Working Capital Management from Processes Perspective

The purpose of this thesis was to study working capital management methods in the case company and find ways to improve them. Analyzing current situation gave direction to what kind of plans have to be done to free tied-up capital. The aim was also to create new rules and policies for routine work. Main research question for this thesis was “How should processes be enhanced to improve working capital management? ” In order to answer the research question the current economic situation and the existing processes were analyzed to understand and find the best ways to optimize working capital management. Defining the current situation formed two sub questions which were: What is the current situation of working capital management in the case company? What are the factors affecting working capital? Research was carried out using qualitative research methods. A consulting company was hired by the case company to conduct a working capital project, a part of a larger project to which this thesis also contributed. The theory base for this study was gathered from literature, articles, the Internet, and from the cas