Maximising working capital: lessons from corporate treasurers

In a world of rapid economic shifts, geopolitical uncertainty, evolving supply chains and accelerating technology, working capital has become a critical strategic lever. On a panel focused on maximising working capital, moderated by Rajesh Chacko, Head of Global Trade Solutions Sales, HSBC, Carol Thurnheer, Global Working Capital Programme Lead at Haleon, and Ed Bayliss, Assistant Treasurer at Kingfisher, shared how they’re rethinking cash conversion cycles, supply chain finance and cross-functional collaboration to drive sustainable growth.

The overarching message was clear: success now depends on operational discipline, smart use of technology, cultural change and tight alignment with commercial strategy.

The past five years have reshaped treasury priorities. The pandemic, inflation and slower growth in some markets have pushed organisations from abundant liquidity to disciplined cash optimisation.

For Haleon, which demerged from GSK in 2022. Forecast accuracy became a key KPI across regional hubs, alongside benchmarking and term optimisation across customers and suppliers.

Kingfisher moved from a post-pandemic cash-rich position to slower growth and tighter consumer demand across Europe. Working capital has become an increasingly important lever to support resilience and disciplined financial management. Treasury teams are playing a more strategic role, working closely with the business to support liquidity while enabling sustainable growth.

Optimising payables, receivables and inventory requires coordinated action across functions.

Payables and supply chain finance (SCF): SCF is increasingly strategic. Haleon’s Thurnheer described it as essential to meeting cash conversion targets, but noted the complexity of aligning procurement, treasury, banks and fintech partners. The panel’s advice: start with pilots, ensure back-office readiness, and build cross-functional governance early. Simplification and stakeholder buy-in are key to scaling.

Treasurers also stressed that receivables programmes shouldn’t compensate for weak collections. They should be used where they genuinely enable growth or mitigate risk. In some cases, credit insurance may be a lower-cost option for managing exposure.

Kingfisher’s Bayliss added that commercial initiatives designed to support customers can have working capital implications that are not always immediately visible in the P&L. Treasury’s role is to quantify those costs so decision-makers understand the full impact.

Inventory management: While typically led by supply chain teams, treasury plays an advisory role by measuring financing impact and ensuring alignment with working capital goals. The discussion reflected a broader industry shift towards balancing just-in-time efficiency with greater supply chain resilience following recent supply shocks.

Kingfisher reduced inventory days through improved supply chain visibility and AI-driven promotion tools to clear stock efficiently. Haleon is focusing on stock-keeping rationalisation and packaging consolidation to improve efficiency. In both cases, operational changes, not just financing tools, are driving results.

Working capital optimisation is as much about culture and collaboration as it is about financial instruments.

Kingfisher highlighted the value of internal dialogue and knowledge sharing across markets. Bringing regional treasury teams together to exchange ideas and best practice has helped standardise approaches and uncover opportunities that might otherwise be missed.

Better visibility and analytics underpin many of the panel’s successes. Haleon prioritised forecasting accuracy to improve cash visibility across regions. Kingfisher has enhanced its cash forecasting, combining monthly budgets with 13-week daily cash flow forecasts to provide a more dynamic view of liquidity.

The discussion noted that, across the industry, data integration and automation remain areas of ongoing development. Future gains are likely to come from stronger connectivity, real-time data and AI-driven insights.

Leaders need to connect balance-sheet efficiency with P&L impact. Extending payment terms, deploying financing programmes or accelerating collections can affect margins and customer relationships.

The panel emphasised holistic decision-making. A two-percentage-point financing cost can materially reduce operating margins even if it improves cash flow. And pushing suppliers too hard on terms can increase costs if suppliers price in their own financing burden.

As growth slows in many markets and supply chains continue to evolve, working capital will remain a priority for CFOs and treasurers. The panel’s experience shows that success depends on cross-functional alignment, cultural change and disciplined execution, not just financial engineering.

For business leaders, the message is simple: maximising working capital is no longer optional – it’s a strategic imperative that can unlock liquidity, support growth and strengthen resilience.