Which of the following metrics is the most appropriate measure of supply chain asset efficiency?
Which of the following metrics is the most appropriate measure of supply chain asset efficiency?
Cash-to-cash cycle time measures the time taken for a company to convert its investments in inventory and other resources into cash flows from sales. This metric is a primary indicator of how efficiently a company manages its supply chain assets. A shorter cash-to-cash cycle time means that the company is able to quickly turn its resources into cash, demonstrating effective and efficient use of its supply chain assets.
Cash-to-cash cycle time metric measures the time taken for a company to convert its investment in inventory and other resources into cash flows from sales. In the context of supply chain management, a shorter cash-to-cash cycle time indicates a more efficient use of assets, as it means the company is able to quickly turn its resources into cash.