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

2010; Taylor & Francis; Volume: 13; Issue: 5 Linguagem: Inglês

10.1080/13675567.2010.518563

1469-848X

Andreas Holter, David Grant, James Millar Ritchie, W. Nigel Shaw, Neil Towers,

Transportation and Mobility Innovations

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.