Dan Ginsberg, Managing Director, Private Equity at SGS Maine Pointe recommends switching to a more holistic, multidisciplinary approach. He explains why working capital optimization should be taken out of the CFO’s office and into the domain of every office and line of business within the company to release cash, reduce cost, and improve service. 

In an era of volatility, using old methods of cost-cutting to release cash may be worse than short sighted. According to Dan Ginsberg, Managing Director, Private Equity at SGS Maine Pointe, cost cutting alone often undermines customer service and ends up costing more in the long run.

In his recent article, “Working capital takes top priority in 2023,” Ginsberg recommends aligning the end-to-end supply chain to enable a more holistic, multidisciplinary approach, based on three pillars: releasing cash, reducing cost, and improving service. 
The strategy he describes relies on collaboration and optimization across functions, reaching into every office and line of business in the company. It results in greater visibility and control over sales, inventory, operations, and procurement (SIOP), while allowing a company to access its maximum cash potential.