Long-range transport: Speeding up the cash-to-cash cycle

Andreas R. Holter, David B. Grant, James M. Ritchie, W. Nigel Shaw, Neil S. Towers

Research output: Contribution to journalArticle

5 Citations (Scopus)

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 languageEnglish
Pages (from-to)339-347
Number of pages9
JournalInternational Journal of Logistics Research and Applications
Volume13
Issue number5
DOIs
Publication statusPublished - 2010

Keywords

  • Cash-to-cash cycle
  • Payment terms
  • Supply chain
  • Transport

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