Why Financial Reengineering Does Not Equal Supply Chain Improvement
Supply Chain Shaman
MARCH 18, 2018
The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. The cash-to-cash definition is: Cash-to-cash= Days of Receivables+ Days of Inventory-Days of Payables. Note the increase in receivables, inventory and payables, and the small increase in Cash-to-Cash.