or Cash to Cash Cycle for Asset Heavy/Industrial Manufacturing Industries
The most important part of running business operations is running the expenses and incomes efficiently, irrespective of the nature of business. In management terms, this is known as managing working capital (WC) or managing the “Cash to Cash” (C2C) cycle. Organizations require WC not only to fulfill external requirements such as customer deliverables, vendor payments, utility bill payments etc. but also to run their internal operations such as paying employee salaries, establishment costs and maintenance of assets. Efficient WC management is therefore the cornerstone of running the organization like a well-oiled machine. This paper attempts to objectively define the factors impacting the WC and how efficiently they can be managed. For better illustration, this paper takes a reference to asset heavy industries that are often plagued by poor WC or cash-to-cash (C2C) management issues.
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