Track cash before it disappears into stock
Use the cash conversion cycle to identify where vending cash is tied up and how to shorten the cycle.
The move: measure how long route cash lives as inventory. The cash conversion cycle is days inventory outstanding plus days sales outstanding minus days payables outstanding. In vending, customer payment is fast, so the main cash trap is inventory. Product in your garage, product in the machine, and product that expires before sale all represent cash that cannot buy another placement, repair a validator, or pay a machine note. Use the idea practically. For each SKU, estimate days of supply: units on hand divided by average units sold per day. Then compare it with shelf life, supplier lead time, and…
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