Managing the Supply Chain Using the Cash-to-Cash Metric

Theodore M. Farris, Franz Staberhofer, Heimo Losbichler

Research output: Chapter in Book/Report/Conference proceedingsConference contributionpeer-review

Abstract

There are many metrics available within a firm which may be used to help manage the firm toward achieving its objectives. Firms seeking supply chain improvements must develop metrics between firms. This paper provides an overview of the cash-to-cash concept. It begins by explaining how to calculate cash-to-cash. It then addresses the research question “How can the cash-to-cash metric be used to help improve the profitability of the supply chain?” First, it discusses how to leverage the three key variables to improve cash-to-cash performance. It considers the link between cash-to-cash performance and firm profitability as well as how to benchmark using the metric. Finally it identifies the premise behind WACC or inventory arbitrage and offers managerial considerations.
Original languageEnglish
Title of host publicationManaging Supply Chain Performance
Pages2-16
Publication statusPublished - 2010
Event8th International Conference on Logistics and SCM Research - Bordeaux, France
Duration: 29 Sep 20101 Oct 2010

Conference

Conference8th International Conference on Logistics and SCM Research
CountryFrance
CityBordeaux
Period29.09.201001.10.2010

Keywords

  • cash conversion cycle
  • cash-to-cash
  • measurement
  • cash flow

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