Originally published in Supply Chain Brain
Cash is always king, but in the supply chain, revenue growth alone is no longer enough. Rising costs and tighter lending conditions contribute to a growing emphasis on working capital. How companies manage their liquidity is now receiving board-level scrutiny.
Most supply chain companies rely on varied monetization models, large lease portfolios and multinational operations. Billing is more usage-driven, and partner ecosystems are intricate. Operationalizing efficient revenue-to-cash conversion across this complexity is challenging, particularly when prior system investments prioritized disparate CRM, ERP, CPQ and billing point-solutions for revenue generation with little consideration for how to share that data.
The traditional way to speed up time-to-cash is to hone your accounts-receivable performance and tighten up the collections process. While those aren’t bad ideas, these typical measures alone won’t improve your cash flow.
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