Benchmarking Cash-to-Cash Cycle Time

Published On:
February 05, 2024
Authored By:
APQC
Members-Only Content:

Data from APQC's Open Standards Benchmarking in supply chain planning shows how organizations perform on cash-to-cash cycle time. Cash-to-cash cycle time looks at the number of days of working capital an organization has tied up in managing its supply chain. The faster the cash-to-cash cycle, the fewer days an organization’s cash is unavailable for use. Typically, the cash-to-cash cycle time is improved by eliminating factors such as excess inventory that tie up operating capital. But concerns such as inventory optimization need to be weighed against the risks of participating in a global market.