Supply Chain Metrics That Matter: The Cash-to-Cash Cycle via SupplyChainInsightsCommunity

Version 1

    We'd like to share this report by Abby Mayer, Research Associate, Supply Chain Insights LLC, which was recently published on the


    Supply Chain Metrics That Matter: The Cash-to-Cash Cycle

    Using Financial Data from Corporate Annual Reports to Better Understand the Cash-to-Cash Cycle


    When it comes to supply chain, no two industries are the same; but, improving Cash-to-Cash cycle (C2C) metrics matters across all industries. With over a decade of investment in technology and process improvements, we can now assess progress. In this report, we examine the financial data in three time frames:


    2000-2003 Dawn of Business-to-Business (B2B) commerce and Global Connectivity

    2004-2007 Pre-recession

    2008-2011 Post-recession


    The health of the supply chain can be quickly assessed through the analysis of the C2C metric. It is a composite metric that combines decisions on receivables, payables and inventory management. Overall, while supply chain leaders have focused on the reduction of C2C cycles, little progress has been made. For most, despite a decade of investments in channel connectivity and supply chain optimization, there is limited progress on receivables and inventory. Instead, we find that the most mature companies have turned to increasing Days of Payables in an effort to reduce C2C. This can be detrimental to the overall health of the supply chain.


    Read more!