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Cash Flow Management in a Crisis

Cash flow across supply chains

In the current situation, it is essential to protect employees, understand business risks, and manage supply chains affected by the measures taken in order to mitigate a further spread of the infection. Cash flow management will have to become an inseparable part of corporate strategic planning when taking into account the risks related to the spread of COVID-19.
What is worth considering?
  • Make sure that you have a framework in place to manage supply chain risks
  • Mobilize your internal systems and make decisions based on financial analysis
  • Ensure that your own funding remains viable
  • Think like a CFO across the whole organisation
  • Focus on the cash-to-cash conversion cycle
  • Consider alternatives for supply chain funding
  • Assess obligations and transactions together with suppliers
  • If possible, switch from fixed to variable costs
  • Check the scope of your insurance and the risks it covers
  • Think out-of-the-box, evaluate your decisions in a broader context

Maintain regular communication with your business partners and employees. We recommend that organisations evaluate potential risks in the supply chain and across customers and develop appropriate measures reacting to possible scenarios and further development of the situation.

This piece has been originally developed by Deloitte Czech Republic.

More information: Combating COVID-19 with resilience