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.