In the tough current economic landscape, the ability to manage your cash flow has never been more important.

When looking at opportunities for improving your cash flow, your logistics operations, and your 3PL partnerships aren’t exactly the 1st port of call, says Willem Bekker, Supply Chain Solutions Manager of Bidvest Panalpina Logistics.

However, considering the high impact of supply chain expenditure on your bottom-line, 3PLs are actually ideally placed to find unique opportunities to unlock cash in your business.The traditional involvement of 3PLs on cash flow is simply the concept of outsourcing a non-core function, thereby releasing funds to use in other areas of the business.  This approach only covers the tip of the iceberg.

The greatest impact of your supply chain structure on cash flow relates to inventory holding.  Your warehousing and distribution costs should pale in comparison to the impact of your stock actually sitting on your balance sheet.

It is worthwhile to directly influence the impact of holding your inventory on your balance sheet, thereby making an impact on cash flow.