Financial Flow and Material Flow Integration: Impact of Working Capital on Supply Chain Performance

Abstract: In today’s dynamic business environment, the integration of financial and operational activities plays a crucial role in enhancing supply chain efficiency. This research aims to analyze how well-managed working capital and supply chain performance are related through the study of selected Fast Moving Consumer Goods (FMCG) companies from 2021–2025 by using a variety of data collection techniques. The primary components of this research include cash conversion cycles (CCC), inventory turnover, receivable and payable balances and working together to affect supply chain responsiveness. The study utilized several data analysis methods, including comparison analysis, measurement of efficiency/total supply chain efficiency scores, component analysis, correlation analysis and trend-based forecasting.The study findings found that there is an inverse moderate relationship between CCC and supply chain performance, meaning that firms with lower overall CCC tend to achieve higher inventory turnover.The findings of this study demonstrate how effective synchronization of financial and material flows improves supply chain performance and emphasize the importance of an integrated approach to the management of working capital and the management of supply chains. Keywords: Working Capital Management, Supply Chain Performance, Cash Conversion Cycle, Inventory Turnover, FMCG Sector.