Efficient or Responsive Cash Supply Chain? Making the Strategic Choice

Efficient or Responsive Cash Supply Chain? Making the Strategic Choice

Efficient or Responsive Cash Supply Chain? Making the Strategic Choice


The primary purpose for the existence of any supply chain is to satisfy customer needs and business profits, and the cash supply chain is no an exception to this rule. Banks manage their ATM networks by providing cash withdrawal services where and when the customers require such services, but at the same time in order to make a profit banks should manage these activities efficiently. An effectively managed cash supply chain must be efficient and responsive at the same time.

Responsiveness can be defined as the ability of the supply chain to respond purposefully and within an appropriate time-scale to customer requests or changes in the market-place. In contrast, a supply chain can be considered to be efficient, if the focus is on cost reduction and no resources are wasted on non-value added activities. Balancing the conflict between these two dimensions is where real challenges lie.


Decision makers in ATM supply chains face conflicting priorities that involve a trade-off between efficiency and responsiveness. The technological tools that have been available on the market usually focus either on solving problems to do with efficiency or responsiveness. For instance ERP applications predominately support efficiency and various process automation applications support responsiveness. Depending on the business strategy your company chooses, either to emphasize efficiency or responsiveness as the main way to differentiate itself from competitors.


But if your organization manages to improve both, it can create a sustainable competitive advantage. And today it is possible to achieve this goal by implementing an intelligent business operations working style. Intelligent Business Operations (IBO) tools have proven to be an effective technique for the improvement of business processes. It provides visibility, situational awareness and flexibility for those who manage cash supply chain operations and make the decisions on a daily basis.

When choosing a cash supply chain management solution, it is important to look for technologies that support a high responsiveness level and that increase performance efficiency at the same time. Such technologies should include demand management tools, optimization engines, complex event processing tools, role-based dashboards, decision management technologies, performance measurement analytics and most importantly, it should be based on near- or real-time data.