Question

Inventory Turnover is the traditional metric for judging the effectiveness of a supply chain. C2C (Cash-to-Cash) is quickly supplementing, and some experts say, replacing Inventory Turnover as the major supply chain metric. Why do you think that there is now an emphasis on C2C? Discuss some companies that excel in C2C and tell us how they do that. (Be sure to give credit to your research sources so that we can learn from your research.) There is no section in our textbook on C2C, so this question will require your research on the subject. There is, however, much information in our textbook concerning inventory turnover, so please review it carefully.

Answer 1

C2C that stands for cash to cash is a liqidity ratio This shows the ability of the company for the payment of its cash expenses with the helps of using the Average collectionperiod and the Average payment period , operating cycle , Inventory turnover ratio etc. Various supply chain practices also provides help in improving of cash to cash cycle time by reducing the mediators or by reducing the credit period policy. But one thing is that there is no impact of C2C on the profitability of the company. It just used to increase the goodwill of the firm so easy taking loan facility . There are various ratios of liquidity such as liquid ratio or we say quick ratio or we say current ratio that are static in nature . And Operating cashflows are related or sensitive to fluctuations in revenue or earnings.

Samsung . Toyoto , Asian paints , Maruti are such companies that excel in C2C.

• These companies have largely outperformed their peer companies in delivering excellent results in C2C. These companies have been successful in C2C due to the reason of proper discipline and working towards the way to vision