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.

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.

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

• Journal Article Type: Article
• Acceptance Date: Aug 23, 2010
• Online Publication Date: Oct 1, 2010
• Publication Date: Oct 13, 2010
• Print ISSN: 1367-5567
• Publisher: Routledge
• Volume: 13
• Issue: 5
• Pages: 339-347
• DOI: https://doi.org/10.1080/13675567.2010.518563
• Keywords: Transport; Cash-to-cash cycle; Supply chain; Payment terms
• Public URL: https://hull-repository.worktribe.com/output/417934
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/13675567.2010.518563