How to Optimize Supply Chain Operations for Strong Cash Flow.pdf

For companies of all sizes and across all industries, cash is not only crucial—it’s king. It sounds simple: In order to survive, businesses must ensure that payments aren’t going out faster than resources are coming in. According to a recent study, however, not all businesses are following that formula: companies that do monthly cash flow planning have an 80% survival rate—more than double the 36% survival rate for those only planning once a year. This discrepancy is partially because careful planning enables your company to build up a solid cash reserve, and that reserve can serve as a life vest when you experience poor supplier performance, forecast errors, transportation breakdowns, weather disruptions, or other unexpected obstacles.