Map the working-capital cycle in days and decisions

Define the operating stages

Record when cash is committed, when goods or work become available, when revenue is recognized, when an invoice is issued, and when cash is collected. Service companies can have work in progress even without physical inventory.

Payables provide timing but are not free capital when discounts, supply continuity, or relationships are affected.

• Inventory or work days
• Receivable days
• Payable days
• Deposits and deferred revenue

Locate the controllable delay

Segment by customer, product, supplier, and exception rather than relying only on averages. One disputed invoice or slow-moving product can matter more than a small portfolio-wide improvement.

Assign an owner and evidence for each delay: purchasing terms, production scheduling, billing accuracy, collections, or approval workflow.