C2C-Cycle (Cash-to-Cash-Cycle).
We define as the C2C cycle the average period of time (in days) that one zloty spent on raw materials takes to return back to the producer.
Brief description
The Cash to Cash cycle is a valuable and interesting benchmarking tool for supply chain management because it can be quickly compared internally as well as externally. As a control concept, it can direct attention to partner organization in the supply chain in a simple and understandable way.
At the enterprise level, it focuses on shaping and optimizing procurement processes (accounts payable lead time) through internal material and information flows (inventory sustainability, WIP) to distribution (accounts receivable lead time), where all processes having to do with accounts payable, inventory and accounts receivable lend themselves to consideration. The C2C cycle, therefore, should not only be used by the finance and control department, but more so as a cross-section of the company and should be used as such.
RELATED TERMS
Intralog products: