15-1. Dell's innovation in working capital management came from recognizing that the primary contributors to a firm's need for working capital were inventory and accounts receivable. If the firm can find a way to reduce its need for inventory, for example, by arranging with firm suppliers to provide inventory items just when they are needed (just- in-time inventory management), and to sell for cash (or even collect the cash before the item is shipped), then there is little need for inventory, of course, this requires careful coordination between Dell and its suppliers and requires doing business without extending credit (as in the case of Dell's consumer sales). Combining these two practices along with negotiating favorable credit terms with the firm's suppliers turned Dell in to a working capital guru for the industry. 15-1. Dell's innovation in working capital management came from recognizing that the primary contributors to a firm's need for working capital were inventory and accounts receivable. If the firm can find a way to reduce its need for inventory, for example, by arranging with firm suppliers to provide inventory items just when they are needed (just- in-time inventory management), and to sell for cash (or even collect the cash before the item is shipped), then there is little need for inventory, of course, this requires careful coordination between Dell and its suppliers and requires doing business without extending credit (as in the case of Dell's consumer sales). Combining these two practices along with negotiating favorable credit terms with the firm's suppliers turned Dell in to a working capital guru for the industry