5 Most Useful Fulfillment Metrics

2. Cash-to-Cash Cycle Time
Cash-to-cash cycle time is commonly regarded as a good indicator of the health of a company’s supply chain and of overall market competitiveness. It's calculated from this equation:

inventory days of supply
plus
days of sales outstanding
minus
days payable.

Cash-to-cash cycle time indicates how your supply chain processes impact your company. Inventory days of supply are impacted by your ability to manage inventory, how well you forecast and plan, how reliable your suppliers are at making on-time deliveries, and how effective your transportation management and warehousing processes are.