Abstract
This paper introduces a model to reduce combined transport and cash flow costs for long-range transport. Containerised transport has become increasingly important in global supply chains. However, products in transit tie up substantial capital, as transit times can extend to 6 weeks. Shippers are under pressure to improve their cash flow; however, the cash flow implications of international shipments may depend more on payment terms than time-in-transit. The model presented improves route selections by incorporating both transport cost and cash flow considerations, thus generating considerable savings. This paper provides a new and original contribution as this type of model has not previously been developed. The model was developed through action research in a single case study and has not been tested in other contexts; however, it can easily be used in standard spreadsheet applications and thus provides a useful tool for shippers. © 2010 Taylor & Francis.
Original language | English |
---|---|
Pages (from-to) | 339-347 |
Number of pages | 9 |
Journal | International Journal of Logistics Research and Applications |
Volume | 13 |
Issue number | 5 |
DOIs | |
Publication status | Published - 2010 |
Keywords
- Cash-to-cash cycle
- Payment terms
- Supply chain
- Transport