Utilizing cash‐to‐cash to benchmark company performance

Abstract

Purpose

The purpose of this paper is to show how the cash‐to‐cash (C2C) metric may be used to benchmark supply chain performance.

Design/methodology/approach

The paper utilizes C2C variables as a means to benchmark company performance.

Findings

Three case studies are offered where firms have benchmarked to: review their internal accounts payable policies; linked results of their benchmarking to profitability to help focus implementation efforts; and served as a call to action to proactively seek improvements with key trading partners. The models developed in this paper provide a benchmark approach to inter‐firm supply chain financial management. These models have direct application in a cost conscious economy and represent a non‐zero sum gain for cooperating corporations.

Research limitations/implications

C2C variables are readily available for use in benchmarking.

Practical implications

C2C benchmarking allows the firm to identify where to focus improvements with their supply chain trading partners.

Originality/value

C2C has been touted as the first multi‐dyadic supply chain metric.

Citation

Randall, W.S. and Theodore Farris, M. (2009), "Utilizing cash‐to‐cash to benchmark company performance", Benchmarking: An International Journal, Vol. 16 No. 4, pp. 449-461. https://doi.org/10.1108/14635770910972405