Now that the economy seems to be moving again, it's natural to worry less about working capital - natural, but not recommended. In fact, a recovery can be almost as dangerous for a business as a downturn. Move too slowly and you may lose out on important opportunities. Move too quickly, you may build up too much inventory and run out of cash.

Striking the right balance is not easy. A lot comes down to how well managers can answer some important questions, not only about inventory, but about customer credit risk and supplier terms.

About REL

REL, a division of The Hackett Group, Inc. is a world-leading consulting firm dedicated to delivering sustainable cash flow improvement from working capital and across business operations. REL's tailored solutions balance client trade-offs between working capital, operating costs, service performance and risk. REL's expertise has helped clients free up billions of dollars in cash, creating the financial freedom to fund acquisitions, product development, debt reduction and share buy-back programs. In-depth process expertise, analytical rigor and collaborative client relationships enable REL to deliver an exceptional return on investment in a short timeframe. REL has delivered work in over 60 countries for Fortune 500 and global Fortune 500 companies.

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