This lack of liquidity affects companies' ability to invest strategically, innovate or safeguard against market volatility. At the same time, borrowing costs are rising, supply chains remain unstable, and inventory levels continue to grow.
In this environment, companies that manage their working capital efficiently gain a distinct competitive edge. One of the most valuable tools to support this is the cash-to-cash (C2C) cycle.
What Is the Cash-to-Cash Cycle?
The cash-to-cash cycle measures the number of days it takes for capital invested in production and logistics to be converted back into revenue. The shorter the cycle, the quicker a company can unlock tied-up capital.
A short C2C cycle supports a more agile, liquid and future-proof supply chain. This is where modern intralogistics can make a real difference.
Companies that store faster, pick more efficiently and deliver more quickly not only improve operational throughput they also enhance their financial performance.
Why the Cash-to-Cash Cycle Matters to Business Leaders
The C2C cycle is a crucial performance indicator for decision-makers across departments:
For Managing Directors and Investors
It offers insight into operational excellence. In uncertain markets, it is not just profitability that matters, but how efficiently capital flows through the business.
For Warehouse and Logistics Managers
There is a direct link between warehouse processes and capital lock-up. Every extra product stored, every delay in fulfilment and every unoptimised process extends the cycle and ties up valuable funds.
For Purchasing Managers
Supplier payment terms and precise demand forecasts are key levers. Just-in-time delivery and tight supplier collaboration help reduce overstocking and improve responsiveness.
For Supply Chain Leaders
They are responsible for synchronising material flows across functions. Their goal is to minimise bottlenecks, cut lead times and increase delivery reliability, all of which shorten the C2C cycle.
Across all departments, the message is clear: the cash-to-cash cycle is not just a financial KPI; it is a strategic tool for building resilient, profitable operations.
How Gonvarri Material Handling Helps Shorten the Cash-to-Cash Cycle
As a global leader in warehouse and intralogistics solutions, Gonvarri Material Handling (GMH) delivers measurable results. Our solutions directly support financial objectives by reducing tied-up capital, increasing turnover speed and boosting operational efficiency.
1. Optimised Storage Solutions Reduce Inventory Commitment
Smart storage and racking systems allow more efficient use of space. Our "Maximise Every Inch" concept is designed to consolidate stock, cut unnecessary inventory and optimise layout.
Less idle stock means faster inventory turnover and significantly shorter capital commitment periods.
2. Automation Accelerates Throughput
Automated systems streamline the path from storage to dispatch. By speeding up order processing, companies receive payments more quickly, improving liquidity and cash flow.
3. Digital Tools Enable Transparency and Control
With warehouse management systems (WMS), sensors and IoT technology, businesses gain real-time visibility into stock movement. This supports precise replenishment, avoids overstocking and improves procurement planning.
At both strategic and operational levels, digital tools give full oversight of C2C levers.
4. Reliable Service Minimises Downtime
Our comprehensive service offerings, including preventative maintenance, retrofit solutions and spare parts keep systems running smoothly. Reduced downtime means fewer fulfilment delays and faster capital recovery.
Unlocking Financial Sustainability Through Intralogistics
Many businesses underestimate the financial impact of intralogistics. But by combining smart planning, automation and digital control, they can significantly shorten their C2C cycle and unlock capital.
This leads to:
- Increased financial flexibility
- Greater capacity for reinvestment
- Enhanced resilience in a volatile market
Miguel Ángel Díaz, Deputy CEO / CFO of the Automation Division, sums it up:
“Our customers invest in intralogistics solutions that pay for themselves quickly. Every week of inventory saved strengthens cash flow and accelerates business growth.”
Conclusion: Free Up Capital by Starting with Intralogistics
The cash-to-cash cycle is much more than a finance metric. It is a strategic guide for building efficient, responsive supply chains.
Gonvarri Material Handling helps companies take control of their C2C cycle with trusted solutions, expert advice and deep logistics expertise.
Want to improve your company’s cash-to-cash cycle?
Our team will assess your operations and highlight tailored opportunities to free up capital.
Intralogistics is not just about movement, it’s about momentum.
The GMH Framework
Our strategic framework drives every GMH solution:
Connect. Build. Perform.
- In the Connect phase, we collaborate to understand your challenges and objectives.
- During the Build, we design and deliver warehouse solutions tailored to your business.
- In Perform, we ensure your operations are optimised long-term for measurable results.
This approach is our commitment to your supply chain success.
A Full-Service Offering: From Shelving to System Engineering
GMH offers a comprehensive portfolio of intralogistics technologies, ranging from traditional racking and shelving to mobile systems, shuttle solutions, and steel constructions for automated environments.
Our modular, scalable solutions keep our clients flexible and future-ready.
We also support system integrators with expert engineering and in-house steel production, laying the groundwork for complex, high-performance warehouse systems.