![]() ![]() ![]() This concept is one that Toyota uses internally and it also requires of its suppliers to improve the overall C2C cycle. This adaptability to demand has given Toyota the advantage of carrying the least inventory in the field of Japanese auto manufacturers (4). Toyota is able to manufacture vehicles in about the same order customers buy them (3). Toyota’s lean operation focuses on the idea of buy one, sell one. Translated from Japanese, it means “make flat and level.” In particular, it refers to eliminating spikes in demand, but also creating operational efficiency and reducing overall supply chain costs. The term Toyota uses for their system is “heijunka”. Its operational success is often attributed to the focus on reduction in inventory. One organization that has successfully implemented a C2C system is Japanese automaker Toyota. Decrease average accounts receivable (2).Reduce inventory by reducing the production cycle.For supply chain professionals, it measures the efficiency of the entire process, from suppliers, to manufacturing, through to order fulfillment (2).Ī company can take three actions to decrease the C2C cycle: In accounting, C2C is a good measurement of liquidity of the firm. Many factors influence this, including inventory management, supplier performance, and collection of accounts receivable. C2C is generally the number of days it takes to convert the expenses for raw materials into payment for the finished product (1). Both Accounting and Supply Chain professionals rely on Cash to Cash (C2C) measures to make processes more efficient and cost-effective.
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