4. The effect of digitalization is measurable – How transparency on the CCC creates momentum for working capital management?

The management of working capital and financial supply chains has recently gained increasing interest in companies as well as in academia. The advantages of digitalization are diverse in this area, and there is remarkable potential to release tied-up working capital through collaborative actions in the value chains. In this chapter, we review selected literature on measuring and managing inter-organizational working capital, and discuss the effect of digitalization on working capital management. Lastly, we propose a concept for measuring, monitoring, and managing working capital at the value chain level. The main element of the concept is a web-based platform which enables the linking and managing of the physical and financial flows in the value chain via modern technologies and real-time information flow.