by Dr Lisa | cash to cash cycle time, cash velocity, Dr Lisa Lang, mafia offer, maximizing cash flow, maximizing profitability, payment discount, payment terms, throughput
Continuing our cash velocity discussion started on March 16, 2007 Now let’s look at the impact on what we discussed yesterday had on our throughput. Let’s say we immediately visit a customer whose complete order was shipped and had just been received by that customer....
by Dr Lisa | cash constrained company, Cash constraint, cash to cash cycle time, cash velocity, mafia offer, maximizing cash flow, maximizing profitability
Continuing our cash velocity discussion started on March 16, 2007Reducing Float for the Cash Constrained CompanyNow let’s consider a case where there is a cash constraint.When cash is your constraint, going out of business is usually not far behind. Most small...
by Dr Lisa | cash reserve, cash to cash cycle time, cash velocity, funding growth, payment discount, payment terms
Continuing our cash velocity discussion started on March 16, 2007The Role of Payment Terms in Cash VelocityTo reduce the time it takes to collect payment from our customers we offer a 1%/10 option, but none of our customers use this option and many of them pay late...
by Dr Lisa | cash flow, cash to cash cycle time, cash velocity, goldratt, theory of constraints, throughput accounting
Cash velocity is a component of the wider topic of cash flow. Both cash flow and cash velocity are like good health. When you have it, you don’t really notice. But for many companies the time between when they have to pay their vendor and when they get paid is large...
by Dr Lisa | Cash constraint, cash to cash cycle time, eliyahu m goldratt, goldratt, maximizing cash flow, Ravi Gilani, Theory of Constraint books, theory of constraints, throughput accounting, TOC Consultant
I’m currently working on a book “Maximizing Cash Flow: The Theory of Constraints Way”. Goldratt doesn’t cover cash flow and it’s not even included under the topic of Throughput Accounting. It is however, one of the most important topics...
