How Middle Market Companies Can Avoid a Liquidity Crisis

Managers tend to think about liquidity as a finance issue, but in face the behaviors of the sales and operations team — and how they communicate and work together — can have a direct affect on a company’s cash position. To improve this working relationship, focus on aligning the teams, improving the quality of forecasts, map forecasts to the supply chain, and optimize for profitability rather than predictability. Following these steps can reduce a company’s working capital needs and increase earnings and cash flow.