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

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

Authors

Andreas R. Holter

David B. Grant D.Grant@hull.ac.uk

James M. Ritchie

W. Nigel Shaw

Neil S. Towers



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.

Journal Article Type Article
Publication Date Oct 13, 2010
Print ISSN 1367-5567
Electronic ISSN 1469-848X
Publisher Taylor & Francis (Routledge)
Volume 13
Issue 5
Pages 339-347
APA6 Citation Holter, A. R., Grant, D. B., Ritchie, J. M., Shaw, W. N., & Towers, N. S. (2010). Long-range transport: Speeding up the cash-to-cash cycle. International Journal of Logistics Research and Applications, 13(5), 339-347. https://doi.org/10.1080/13675567.2010.518563
DOI https://doi.org/10.1080/13675567.2010.518563
Keywords Transport; Cash-to-cash cycle; Supply chain; Payment terms
Publisher URL https://www.tandfonline.com/doi/full/10.1080/13675567.2010.518563
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