With $1.7 trillion tied up in inefficient supply chains, CFOs are making procurement a core strategy.
A monkey
There is $1.7 trillion of working capital sitting on the balance sheets of major US corporations: not locked up in failed investments or delayed acquisitions, but trapped in slow acquisitions, excess assets, and payment structures designed for a different economic climate.
That money has not disappeared. It remains tied to processes that no longer reflect how companies manage risk, liquidity, or the supply chain.
For many CFOs, the biggest source of unused cash is cash already invested in operations. Yet organizations often struggle to unlock it because treasury, procurement, operations, and suppliers continue to pursue different goals using disconnected systems and metrics.
JP Morgan estimates that hundreds of billions of dollars are still trapped in working capital across major companies, while consultant Hackett Group puts the loss of opportunity at $1.7 trillion.
The culprits include receivables that take too long to convert to cash, inventory accumulated as a hedge against uncertainty, supplier payment structures that fail to balance cash flows across the value chain, and cash reserves that remain underutilized because companies lack visibility into how they are being used effectively.
For many years, this dysfunction was manageable. Low interest rates, a predictable supply chain, and an abundant supply of capital reduce the urgency of rethinking working capital. Treasury management, negotiated payment terms, sales focused on collections, and financial institutions provide financing within established relationships.
Today's environment requires a different approach.
High interest rates, geopolitical uncertainty, high prices, supply chain disruptions, and continued margin pressure have elevated working capital from a financial function to a strategic business imperative. Yet many organizations continue to manage money using operating models designed for a different era.
According to Deloitte's Q1 2026 CFO Signals survey, siled organizations and outdated technology remain among the biggest internal barriers to cost control. The Boston Consulting Group noted that extending payment terms alone often simply changes the financial costs associated with the supply chain rather than improving overall efficiency.
So the challenge is broader than funding. It's about collaboration.
Working capital decisions increasingly require treasury, procurement, operations, finance, and suppliers to use common information and align with shared goals. Without that alignment, companies often improve individual functions while reducing efficiency across the organization.
By reflecting these facts, investors have changed their expectations. After several years of strong capital markets, boards are increasingly emphasizing cash flow stability, capital management, and efficiency along with growth. Liquidity has become a competitive advantage rather than just a financial metric.
Rethinking Working Capital
Companies are responding in different ways. Many are investing in better forecasting and real-time currency visibility. Some include modernizing treasury infrastructure, digitizing receivables and payables, expanding supply chain financial systems, or adopting data-driven tools that improve collaboration across operations. Financial institutions are improving their offerings with broader funding networks, automation, and digital capabilities.
There is no single method that will solve the challenge for every organization. What seems increasingly clear, however, is that fragmented processes and limited transparency are becoming increasingly costly. As supply chains grow more complex and financial conditions remain uncertain, organizations need greater visibility into where money resides, how fast it can move, and how financial decisions affect all stakeholders throughout the value chain.
The International Finance Corporation and the World Bank have consistently highlighted digital infrastructure as a key tool for increasing access to supply chain finance, particularly for small suppliers who have previously been outside traditional financial systems. The goal is not technology that does it for itself, but the creation of highly efficient, unregulated financial systems.
The US has one of the deepest financial markets in the world. Yet many companies continue to face unnecessary hurdles in moving liquidity through their supply chains.
The next phase of working capital management, therefore, will likely depend on access to capital – which is always abundant – and more on the ability to link information, stakeholders, and decision-making across expanding business networks.
Successful organizations will be those that treat working capital not as a quarterly reporting metric but as a broader business capability that strengthens resilience, improves capital allocation, and creates flexibility in times of uncertainty.
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Gustavo Muller is the CEO and founder of Monkey, a financial solutions market. He has more than two decades of experience in the financial markets, holding senior positions at Citibank, XP Investimentos, and as a co-founder of Fisher Venture Builder.
