Today, energy often affects companies not as a single bill, but as a chain reaction. When uncertainty rises, behavior changes: inventories grow, payment terms shift, contracts become tougher. The result seems trivial – yet it is crucial: capital is tied up.

Imagine your company as a factory floor. When the lights flicker, it’s not just the machines that run differently. People act differently. And it is precisely these decisions that add up to inventories, receivables, and payables – in other words, working capital.

Typical mistakes

Many organizations respond to energy-driven phases with blanket programs:

• “Reduce inventory – everywhere.”
• “DPO up – immediately.”
• “Tougher dunning – starting tomorrow.”

This may move the numbers in the short term, but it often causes long-term damage: service levels decline, suppliers become unstable, and customer relationships are strained. Optimization without stabilization is a risk.

At HSC, we are not a standard consulting firm, but rather project stabilizers with leadership and lean DNA. Our logic is simple: first stabilize execution, then improve sustainably – practical, implementation-oriented, people- and results-focused.

Step 1: Stabilize (2–6 weeks)

1) Create exposure mapping

Identify the top areas where energy (directly or indirectly) drives uncertainty: products, locations, customers, suppliers. The goal is prioritization, not perfection.

2) Establish a working capital board

A weekly, cross-functional board (operations, purchasing, sales, finance). Focus: Decisions.

• Inventories: conscious vs. reflexive
• Receivables: blockages (disputes, acceptances, credit notes)
• Liabilities: protect critical suppliers

3) Set guidelines

• Minimum service level corridor
• Minimum liquidity range (runway)
• Clear approvals for safety stock and special conditions

Step 2: Improve (6–16 weeks)

Now is the time for structural work:

• Segment inventory (criticality, alternatives, volatility)
• Repair AR processes (dispute management, eliminate causes)
• Differentiate AP (DPO strategy for each supplier segment)
• Simplify contract logic (clear trigger points, short loops)

Metrics

• Cash conversion cycle (CCC)
• DIO / DSO / DPO (trend + causes)
• Service level/OTIF (as sales protection)
• Forecast accuracy for sensitive product groups

Risks / trade-offs

• Reducing inventories can affect service levels and sales.
• Extending DPO can jeopardize delivery capability.
• Hedging logic can limit opportunities.

Conclusion

Energy remains an external factor. But working capital is your internal control variable. Bringing stability to decisions prevents uncertainty from being quietly converted into capital.

The decision is yours: Do you want to continue to “pay” for inventory, receivables, and terms—or actively manage them?