This article is a contribution from our content partner, Kyriba

Working capital is the lifeblood of any successful business, but optimizing it in today’s volatile environment requires more than just best practices. It demands innovation, collaboration, and real-time intelligence.

If you caught our first post, you know that amid economic uncertainty, supply chain disruptions, rising inflation, and shifting consumer demands, working capital has become a lifeline for resilient businesses. We explored why optimizing working capital is crucial in today’s unpredictable landscape and shared foundational strategies for getting started.

In this follow-up, we move from the “why” to the “how,” highlighting innovative approaches and smart moves companies are using right now to optimize working capital, overcome bottlenecks, and drive business growth.

Identifying and eliminating inefficiencies

Before you can fully optimize working capital, you need to uncover hidden bottlenecks that are slowing you down. Supply chain volatility, fluctuating shipping rates, and outdated processes can disrupt cash flow and limit flexibility.

Common bottlenecks include:

• Manual payment processes that create delays and inefficiencies.
• Fragmented invoice systems that lead to late or early payments.
• Limited visibility into real-time cash positions across business entities.

The Solution? High-performing businesses are leveraging automation and real-time tools to minimize these challenges. By automating payment workflows, digitizing invoice approvals, and using cash visibility platforms, these companies are freeing up trapped cash, reducing friction, and streamlining their cash conversion cycles.

Leveraging data analytics for timely insights

In an era of rapid change, intuition is not enough, but neither are manual systems or siloed processes that often lead to disconnected, delayed decision-making. Many organizations still operate with limited visibility into their supply chains, leaving them vulnerable to costly disruptions and concentration risk.

A recent CFO Brew article on supply chain visibility highlights just how little awareness some companies have of their third-tier and indirect suppliers, and how this lack of insight can expose them to risks that may not surface until months after an event. Without robust, real-time data, businesses are forced to make “feel-good decisions” that simply don’t work in today’s fast moving, interconnected world.

Leading organizations are moving beyond intuition and manual processes by turning to advanced data analytics and technologies that provide deep, actionable visibility across their supply chains. By harnessing big data and predictive analytics, companies can:

• Forecast cash positions with greater accuracy
• Identify patterns in supplier and customer behavior
• Pinpoint opportunities to renegotiate terms or optimize payment schedules

But visibility alone isn’t enough. The real differentiator for leading organizations is the ability to rapidly and decisively move from insight to action. Forward-thinking finance teams aren’t just identifying cash positions or spotting inefficiencies; they’re empowered to act on those insights in real time. That means having the tools to seamlessly leverage idle cash through payables strategies, accelerate receivables when needed, or dynamically adjust working capital allocations as market conditions shift.

Platforms that combine full cash visibility with integrated action, such as enabling payables financing, receivables financing, and dynamic discounting unlock a new level of working capital agility.This holistic approach ensures that finance leaders aren’t just observers of data, but active participants in shaping outcomes. It’s this marriage of intelligence and execution that’s setting new benchmarks for resilience and growth in today’s market.

Collaboration across teams boosts efficiency

Optimizing working capital is no longer just a treasury responsibility. The most successful companies treat it as a cross-functional challenge, requiring close collaboration between treasury, supply chain, and procurement teams. For example, when tariffs and trade policies shift, procurement must work hand-in-hand with treasury to anticipate the impact on payables and inventory levels.

Here’s how collaboration can make a difference:

1. Aligning procurement and payment terms to support supplier health while optimizing DPO (Days Payable Outstanding).
2. Synchronizing inventory management with cash flow forecasting to avoid overstocking and underutilization of funds.
3. Joint scenario planning to prepare for supply chain shocks and market volatility.

This integrated approach ensures that every dollar invested in inventory, payables, or receivables is working as hard as possible for the business.

Rethinking innovation in working capital strategies

True innovation in working capital optimization isn’t just about adopting the latest tools—it’s about fundamentally reimagining how people, processes, and platforms connect to unlock value. Today’s most successful organizations no longer treat treasury, procurement, and supply chain as separate, siloed functions. Instead, they are building integrated ecosystems where data flows freely, decisions are collaborative, and action can happen in real time.

From my experience, organizations leading the way are:

• Replacing manual workflows with intelligent automation to accelerate the cash conversion cycle
• Using real-time data to drive smarter, faster decisions about where, when, and how to move cash
• Creating shared KPIs between finance and operational teams, ensuring working capital decisions support broader business goals
• Adopting agile technology platforms that adapt to market shifts and scale with growth

The real breakthrough comes when companies move beyond visibility alone and empower teams to act on insights, turning working capital from a static metric into a dynamic lever for resilience and growth. Innovative CFOs and treasurers are partnering with platforms that offer unified visibility across cash, payments, and working capital, creating real-time command centers for liquidity performance.

In summary, working capital optimization is about more than incremental improvements. It means rethinking how teams connect, how data is harnessed, and how technology is deployed to enable rapid, confident decision-making. By identifying bottlenecks, fostering collaboration, and embracing real-time analytics, organizations can unlock new cash flow and build lasting resilience.

Read more from Kyriba

• From risk to resilience: why bank connectivity is now a CFO mandate
• Why working capital matters more than ever
• A call to action for banks in the AI age
• The Economics of Liquidity: Why CFOs Must Regularly Monitor and Coordinate with Their Treasurer
• Why your risk management system might be sabotaging your business
• Cash Forecasting: Your Blueprint for Liquidity Performance
• How to Tackle Troublesome Tariffs with 5 Savvy Working Capital Solutions
• TreasurySpring Announces Launch of a Public API and Partnership with Kyriba
• Navigating the ISO 20022 Migration
• Optimize Your Cash Forecasting with AI

Join our Treasury Community

Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.

This article is a contribution from our content partner, Kyriba

In a landscape where financial operations are as vulnerable to digital disruption as they are to economic shocks, secure bank connectivity is becoming a new pillar of corporate resilience. As CFOs shoulder broader responsibilities in safeguarding both assets and reputation, the risk of outdated connectivity now rivals traditional market risks.

Security and privacy are no longer back-office concerns—they are central to boardroom strategy. In fact, 76% of CFOs now rank them ahead of inflation and market volatility, signaling a major pivot in finance leadership priorities.

State of the market: Risk radar for CFOs

The financial landscape is changing rapidly, and so are the threats. According to recent industry data, nearly 90% of U.S. companies faced payment fraud attempts in 2025, with AI-powered scams like deepfakes fueling a staggering 118% year-over-year increase. Manual verification methods and disconnected bank processes are no longer sufficient barriers against these sophisticated attacks.

Meanwhile, regulatory scrutiny is intensifying. New mandates around transparency, sanctions, and real-time reporting are raising the stakes for compliance. Organizations relying on outdated, fragmented connectivity risk not only operational disruption, but also reputational damage and costly penalties.

But it’s not just about risk. The ability to move money confidently, forecast liquidity accurately, and respond quickly to market events is now a defining factor in corporate resilience. Forward-looking CFOs are seizing this moment to transform their foundations, turning secure bank connectivity into a driver of agility and growth.

While CFOs are increasingly aware of these external threats, many are overlooking a critical vulnerability much closer to home: their own bank connectivity infrastructure.

Even as CFOs fortify defenses against external fraud and regulatory scrutiny, a more insidious risk often goes unnoticed within their own operations. Many organizations still rely on:

• Custom-built bank interfaces
• Siloed, point-to-point connections
• Manual bank processes and reconciliations

While most discussions around cybersecurity focus on external threats such as cyberattacks or data breaches, CFOs often overlook another critical risk vector within their own operations: outdated and fragmented bank connectivity processes.

Maintaining legacy bank connections is no longer just an IT headache—it’s an existential risk for the modern CFO. What once seemed like a technical detail now shapes the organization’s exposure to fraud, compliance penalties, and operational disruption.

Here’s why: Manual, fragmented processes are ripe for exploitation by today’s sophisticated threat actors. Internal gaps and disconnected systems make it easier for fraudulent transactions to go unnoticed, introduce compliance failures, and create operational delays, especially during periods of market or geopolitical stress. CFOs can no longer afford to treat fraud as an isolated event. Robust, real-time validation and compliance tools are now essential weapons in the treasury arsenal.

• Compliance gaps: Regulations such as PSD2, global sanctions, and local mandates require airtight transparency and traceability. Outdated connectivity exposes companies to audit failures and fines.
• Operational delays: In times of geopolitical crisis or market turbulence, slow or disrupted bank connections can halt payments, freeze liquidity, and damage business continuity.

The good news? Forward-thinking CFOs are recognizing that modernizing bank connectivity isn’t just about risk mitigation—it’s about transformation.

The strategic advantage of modern bank connectivity

Upgrading connectivity is not just about plugging security holes. Modern, unified connectivity delivers:

• Faster payment execution and settlement: Real-time, automated flows mean money moves at the speed of business.
• Improved liquidity visibility: A global, consolidated view across all accounts and banks.
• Reliable cash positioning and forecasting: No more manual workarounds or spreadsheet guesswork.

In a world of volatile FX, rising rates, and political risk, these advantages are not just operational, they’re strategic.

This is where a strategic approach to connectivity becomes essential. Rather than continuing to patch legacy systems, leading organizations are embracing a fundamentally different model.

How BCaaS reduces complexity and builds confidence

Bank-Connectivity-as-a-Service (BCaaS) is designed to address these risks and inefficiencies head-on. BCaaS isn’t just a technical upgrade; it’s a strategic move that allows CFOs to future-proof their organizations against rapidly evolving threats.

• Unified, secure architecture: A single, secure architecture for bank connectivity eliminates silos and fragmented processes, removing operational drag and reducing fraud exposure across the enterprise.
• Proactive risk and compliance management: Integrated security and compliance controls ensure the organization stays ahead of emerging threats and regulatory demands, freeing CFOs from the distraction of constant tactical firefighting.
• Empowered treasury and finance teams: With standardized, automated processes, treasury and finance teams can shift their focus from manual tasks to analysis and strategic decision-making, strengthening the organization’s financial agility.
• Real-time fraud defense: Automated bank validation and real-time monitoring transform fraud prevention from a reactive chore into a strategic advantage, enabling the business to safeguard payments at the speed required by today’s threat landscape.
• Scalable growth and global resilience: A modern connectivity platform unlocks expansion into new markets and supports growth initiatives, without adding complexity or risk, providing agility and confidence in volatile times.

The question isn’t whether to modernize bank connectivity, but how quickly you can make the transition. Here’s what industry leaders are prioritizing:

What leading CFOs are doing now

CFOs leveraging centralized, managed bank connectivity and automated payment validation are better positioned to:

• Respond quickly to market shocks: Real-time insights and controls enable agile action.
• Scale into new markets without delays: Standardized, secure connectivity means faster expansion.
• Strengthen defenses: Integrated fraud detection, compliance, and audit trails reduce risk on all fronts.

To build resilience and stay ahead of fast-evolving risks, CFOs should:

• Assess bank connectivity as critically as balance-sheet risk: Map every touchpoint between your organization and its banks, and quantify the financial and operational exposure if those connections fail.
• Accelerate the shift to automation: Replace manual processes with real-time, integrated solutions that eliminate human error and strengthen fraud defenses.
• Choose strategic partners, not just technology vendors: Align with providers who continuously adapt to regulatory changes and emerging threats, ensuring long-term confidence and compliance.
• Elevate connectivity to a leadership conversation: Ensure treasury and finance teams are trained to act on real-time alerts, and make secure bank connectivity a standing item in board-level risk discussions.

Where is bank connectivity headed?

Looking ahead to the next 12–24 months, the role of bank connectivity will only intensify:

• Increased regulatory scrutiny: Expect new regulations to demand greater transparency, real-time reporting, and more robust controls, making manual or fragmented connections a liability.
• Acceleration of automation & AI: CFOs will shift from reactive fraud detection to proactive, AI-driven prevention. Automated bank validation and real-time monitoring will become industry norms.
• Board-level visibility: Bank connectivity will move from a technical detail to a board-level discussion, directly linked to risk management, growth, and competitive advantage.
• Global standardization: Organizations will seek unified, standardized connectivity across regions and banks to facilitate expansion and ensure resilience during market shocks.

In the coming year, CFOs who proactively modernize their bank connectivity will set a new standard for agility and resilience, transforming financial operations from a point of vulnerability into a source of strategic strength.

Why secure bank connectivity is a strategic imperative

Today’s CFOs are balancing increasing financial complexity with digital risk mitigation. With secure connectivity and automated fraud validation, CFOs can unlock new opportunities for growth, stability, and agility in an unpredictable landscape.

In the end, risk is inevitable, but resilience is a choice. By transforming fragmented bank connections into a unified, secure foundation, CFOs can turn their greatest vulnerabilities into their most powerful assets. The organizations that invest in future-proof connectivity today will be the ones that lead with confidence, and emerge stronger, no matter what tomorrow brings.

Investing in secure connectivity and future-proof fraud prevention isn’t just about protecting assets. It’s about enabling growth, agility, and peace of mind in an unpredictable world.

Read more from Kyriba

• Innovative approaches to working capital optimization
• Why working capital matters more than ever
• A call to action for banks in the AI age
• The Economics of Liquidity: Why CFOs Must Regularly Monitor and Coordinate with Their Treasurer
• Why your risk management system might be sabotaging your business
• Cash Forecasting: Your Blueprint for Liquidity Performance
• How to Tackle Troublesome Tariffs with 5 Savvy Working Capital Solutions
• TreasurySpring Announces Launch of a Public API and Partnership with Kyriba
• Navigating the ISO 20022 Migration
• Optimize Your Cash Forecasting with AI
• Decoding the Impact of ChatGPT for Treasury
• Optimize Your Cash Forecasting with AI

Join our Treasury Community

Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.

This article is a contribution from our content partner, Kyriba

Economic uncertainty. Supply chain disruptions. Rising inflation. Shifting consumer demands. Today’s financial landscape is anything but predictable. For businesses, these challenges are more than just economic headlines—they’re daily hurdles that require strategic planning and agility.

Amid this turbulence, one factor has become a lifeline for businesses trying to stay resilient and seize growth opportunities: working capital.

By effectively managing and optimizing working capital, companies can maintain liquidity, operate efficiently, and position themselves for long-term success. This blog will explore what makes working capital so critical in today’s economy, break down its components, and offer actionable strategies to optimize it.

Why working capital is a game-changer in today’s economy

Working capital is no longer just a financial metric on a balance sheet. It’s a strategic tool that helps businesses adapt to disruption, capitalize on opportunities, and ensure operational stability. Today, liquidity is the new currency of resilience.

Here’s why working capital plays a pivotal role:

• Maintaining liquidity amid volatility: Economic instability and unpredictable markets can strain a company’s liquidity. Working capital provides businesses with the flexibility to meet obligations like paying employees, covering operational costs, and navigating unforeseen challenges without turning to expensive emergency funding.
• Supporting operational efficiency: Healthy working capital ensures companies can purchase inventory, fulfill orders, and maintain exceptional service levels. This financial flexibility prevents production delays, stock shortages, and diminished customer trust.
• Building resilience during economic shocks: Global supply chain disruptions have exposed the importance of financial agility. Strong working capital allows businesses to weather these disruptions, negotiate better terms with suppliers, and stay competitive—even in challenging times.
• Enabling strategic investments: Optimized working capital can be a driving force behind growth. Whether it’s expanding into new markets, adopting advanced technologies, or making strategic acquisitions, sufficient liquidity empowers organizations to act decisively.
• Enhancing stakeholder confidence: Investors, creditors, and suppliers see working capital as a reflection of financial health and stability. A well-managed position can inspire trust, providing better terms on funding or supply agreements.

Breaking Down the Components of Working Capital

Working capital management revolves around optimizing the Cash Conversion Cycle (CCC)—a foundational metric that measures how quickly a company can turn its investments in inventory and resources into cash flow from sales.

The three levers of the CCC are:

1. Receivables (DSO – Days Sales Outstanding): Timely collections are critical. Delayed payments from customers can choke cash flow, especially during periods of volatility. Businesses can accelerate cash inflows by tightening payment terms, enhancing invoicing processes, or leveraging AR automation tools.
2. Inventory (DIO – Days Inventory Outstanding): Unpredictable supply chain disruptions and fluctuating consumer demands require businesses to strike a balance. Too much inventory ties up cash, while too little risks lost sales. Smarter forecasting and sharper inventory management are key.
3. Payables (DPO – Days Payable Outstanding): Extending supplier payment terms strategically can preserve liquidity. However, this must be balanced with maintaining strong supplier relationships and exploring opportunities like early payment discounts.

Optimizing these three components is challenging, especially in a globalized landscape with multiple ERPs, business units, and jurisdictions at play. Advanced analytics and digital financial platforms are essential for real-time visibility, scenario planning, and agility.

Real-world example: Bray International

The scale of the challenge is clear: in our recent CFO survey, more than 70% of finance leaders across key global markets, including the US, UK, Japan, and France, expressed concern about the impact of supply chain issues on their organizations’ financial health and outlook. In France, that figure reached 80%. The message is clear: volatility is not a passing phase, but a defining feature of today’s business landscape.

To see how optimizing working capital can drive resilience, take a lesson from Bray International. When tariffs disrupted trade relations in the U.S., Bray could have reacted defensively. Instead, they took proactive measures like diversifying manufacturing locations and leveraging liquidity for strategic investments.

By adopting data-driven decision-making and scenario planning, they managed to not only mitigate risks but also turn uncertainty into competitive advantage. Their agility underscores the importance of working capital in dynamic environments.

Strategies for Optimizing Working Capital

Managing working capital effectively is a strategic imperative. Here are actionable steps your business can take today:

1. Streamline accounts receivable
   • Tighten customer payment terms.
   • Automate invoicing and follow-ups to reduce delayed payments.
   • Offer early payment discounts to incentivize faster collections.
2. Optimize inventory management
   • Align inventory closely with demand through regular reviews and demand forecasting.
   • Improve inventory turnover to free up tied-up cash.
   • Avoid overstocking or understocking by refining supply chain visibility.
3. Extend accounts payable periods strategically
   • Negotiate longer payment terms with suppliers to hold onto cash longer.
   • Balance this with maintaining healthy supplier relationships.
   • Explore dynamic discounting opportunities for mutually beneficial arrangements.
4. Leverage technology & automation
   • Use AI-driven tools for real-time cash flow visibility and forecasting.
   • Automate repetitive tasks to reduce inefficiencies.
   • Invest in digital payment platforms for speed and simplicity.
5. Reduce non-essential costs
   • Identify and eliminate inefficiencies in daily operations.
   • Regularly audit expenses and reallocate savings to high-impact initiatives.

Overcoming challenges in working capital management

While working capital optimization is essential, businesses face unique challenges that make it difficult to maintain. Here are some common hurdles:

Rising inflation

Higher costs for raw materials, labor, and logistics directly impact purchasing power. Businesses must adopt efficient procurement processes and limit cost variability.

Supply chain disruptions

Extended lead times and increased inventory holding costs have made efficient inventory management more critical than ever. Strategies like nearshoring and alternative supplier sourcing can offer relief.

Stricter credit terms

Suppliers tightening credit terms puts additional financial pressure on businesses. Companies need to negotiate better payment terms and explore financing options to reduce strain.

Turning uncertainty onto opportunity

Today’s volatile conditions have raised the stakes for working capital management. While the challenges may seem daunting, businesses that view uncertainty as an opportunity for strategic growth can thrive where others retreat.

By focusing on receivables, inventory, and payables, and leveraging technology and strategic insights, businesses can free up cash, reduce costs, and position themselves for long-term success.

From financial flexibility to strategic advantage

Working capital is no longer just a financial metric. It’s a lifeline for businesses navigating modern volatility and an enabler of strategic growth. Companies that treat it as an enterprise-wide priority will emerge stronger, more competitive, and better equipped to seize the opportunities hidden within disruption.

Now’s the time to reimagine how your organization manages its cash flow. With proactive strategies and the right tools, you can transform working capital from a routine financial consideration to a strategic lever for success.

Read more from Kyriba

• From risk to resilience: why bank connectivity is now a CFO mandate
• A call to action for banks in the AI age
• The Economics of Liquidity: Why CFOs Must Regularly Monitor and Coordinate with Their Treasurer
• Why your risk management system might be sabotaging your business
• Cash Forecasting: Your Blueprint for Liquidity Performance
• How to Tackle Troublesome Tariffs with 5 Savvy Working Capital Solutions
• TreasurySpring Announces Launch of a Public API and Partnership with Kyriba
• Navigating the ISO 20022 Migration
• Optimize Your Cash Forecasting with AI
• Decoding the Impact of ChatGPT for Treasury
• Optimize Your Cash Forecasting with AI

Join our Treasury Community

Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.