Moscow State University of Printing. Financial logistics The place of finance in the logistics system of an enterprise

THE CONCEPT OF FINANCIAL LOGISTICS. An important condition for the functioning of an organization’s micrologistics system is its financing, provided by financial logistics.

Financing of logistics functions and operations is reflected in the financial flows circulating in the organization together with material, information and service flows.

Theoretical aspects of financial flows, their classification and parameters, planning and analysis of cash flows are included in financial logistics, considered as an element of the logistics management system of a commercial organization.

Financial logistics – this is a set of theoretical provisions and practical methods of planning, controlling and analyzing the financial flows of an organization.

The goal of financial logistics is the complete and timely provision of logistics processes with financing in terms of volumes, timing and sources.

MAIN GOALS. The main tasks of financial logistics include:

1. Selection and justification of sources of financing for logistics operations in the context of types of economic activities (supply, production, sales, service), as well as areas of activity (operational, financial, etc.);

2. Calculation of the financial needs of each department of the organization based on budgets (plans) of expenses;

3. Financing of sales, supply and production budgets, their justification for the current period;

4.Financing the organization’s expenses by departments and areas of activity based on approved budgets;

5. Generating income from logistics activities and reflecting them in budgets (reports);

6. Budgetary control of income and expenses of logistics activities through plan-fact analysis, identifying the reasons for overexpenditure of resources and preparing conclusions and proposals;

7. Calculation and assessment of profitability indicators, efficiency of resource use and overall economic efficiency by departments (segments) and the organization as a whole.

PARAMETERS OF FINANCIAL FLOWS. Financial flows generated within the framework of financial logistics vary in parameters. As economists A.A. rightly note. Kanke and I.P. Koshevaya, the parameters of financial flows serve as indicators of the well-being and sustainability of enterprises, indicate the effectiveness of logistics activities, they are necessary when planning and organizing relationships with counterparties.

The main parameters of flows are volume, time and direction. Flow Volume is indicated in monetary terms and depends on the size of the total financial need of the logistics system. Time financial flow is characterized by its synchronicity with other logistics flows. By direction financial flows are divided into incoming flows (advance, revenue, etc.) and outgoing flows (payment of supplier bills, debts to the country's budget).

There are a number of requirements for the parameters of financial flows requirements:

Ø Sufficiency (availability of the necessary amount of financial resources to meet needs);

Ø Cost optimization based on coordination of the volume and movement of resources;

Ø Coherence (synchronicity) of financial flows with other flows in the logistics management system of the organization;

Ø Adaptability of parameters and structure of financial flows to the specifics of the management system and external factors (policy of counterparties, market environment, etc.);

Ø Reliability of sources of financial resources and efficiency of raised finances (assessment of own financing of logistics processes, selection and evaluation of borrowed sources of financing, use of alternative tools for attracting financial resources.

PRINCIPLES OF FINANCIAL LOGISTICS. The principles of financial logistics include:

Self-regulation to achieve a balance between the flow of cash resources and the movement of material resources, production and minimization of production costs;

Flexibility associated with the possibility of making changes to the financing schedule for the acquisition of materials necessary for the implementation of the finished product project and when adjusting the order conditions from consumers or partners;

Minimizing production costs while maximizing short project implementation cycles;

Integration of financing, supply, production and sales processes in a single project implementation body;

Modeling the movement of cash flows from funding sources to project implementers with the circulation of free funds with maximum efficiency;

Correspondence of financing volumes to the volumes of necessary costs;

Use of software and computer networks for financial management;

Reliability of sources of financing and provision of financial resources for the project;

Cost-effectiveness (through assessment of not only costs, but also the “pressure” on these costs);

Profitability when placing funds.

FINANCIAL FLOW MANAGEMENT. When planning and managing material flows, an organization needs to think through schemes for providing them with financial resources.

Thus, in international relations, the choice of delivery terms CIF and FOB affects the distribution of costs of freight and insurance between the buyer and the cargo supplier. During transportation, costs for damage to cargo are borne by either the carrier or the supplier, depending on the contractual terms, the actual characteristics of the cargo, and the data of title documents. Changing the parameters of the warehousing system affects the safety and quality of the goods, and, consequently, the cost of services. Selling goods on your own, with the help of sales agents, commission agents or consignors, requires different expenses, provides different turnover of goods and the duration of the financial cycle.

In other words, all logistics operations of supply (selection of suppliers, making deliveries, selection of warehouses, etc.), production (financing material costs, labor costs, depreciation, etc.) and sales (financing delivery, services) are necessary assessed through financial parameters, that is, their value. In this case, the synchronization of the movement of material, financial and information flows, achieved on the basis of rational planning, plays a colossal role.

In the process of economic activity, the parameters of financial logistics change. For example, the rising cost of goods forces companies to look for ways to minimize costs, modernize production technologies, and change marketing policies.

Therefore, financial flow management needs permanent adjustments or influences. A condition for rational management is the interconnectedness of information and financial flows. Financial flows (receipts or outflows of cash and their equivalents) must be accompanied by documents confirming the legality and feasibility of logistics operations.

The development of management decisions in the field of financial logistics should take into account not only the basic parameters of financial flows (cost, volume, direction and time), but also additional parameters - the availability and liquidity of financial resources, their value, the number of financial agents and the quality of their services (credit organizations, investment funds, etc.), the degree of their detail.

In the practice of managing financial flows, the main directions for their optimization have been developed.

Optimization of financial flows should be carried out at all stages of the enterprise’s economic activity - supply, production, sales, service. Thus, at the supply stage, funds should be rationally invested in the acquisition of material assets and the organization of procurement. At the production stage, financial resources are optimally spent, changing its form into a commodity one. This ensures the quality of the products produced and the covering of all costs, as well as the inclusion of a profit margin in the price of the product. Finally, at the stage of product sales, cash flows in the form of revenue and profit from sales is formed, then net profit.

Next, the logistics cycle of the organization’s activities is repeated. What is important here is the turnover of working capital, on which the profitability of the organization depends. The financial position of the organization, its liquidity and solvency, and profitability depend on the rate of asset turnover. It follows that optimization of financial flows should be aimed at timely and complete financial support for the organization’s reproduction cycle.

Optimization of financial flows is also achieved by maximizing cash receipts (cash inflow) and reducing cash payments (cash outflow).

In practice, organizations use three ways to maximize cash flows:

1) An increase in the difference between revenue from sales of products and the costs of their production (sales). This is achieved through rising prices or cutting costs. In the first case - rising prices - a negative effect can be obtained in the form of an increase in inventories (overstocking) and a drop in sales volume. In the second case - cost reduction - it is possible to reduce the quality of products sold;

2) Acceleration of cash flow. This acceleration can be obtained by shortening the organization’s logistics cycle, or stimulating sales through discounts, improved service and other impacts on the logistics management system (fast delivery, sales consultations, etc.). Nowadays, small wholesale or small batch purchases are practiced in a fairly wide assortment, which allows not to divert significant funds from the organization’s turnover;

3) Elimination of unproductive (extra) expenses. This could be reducing the supply chain (elimination of intermediaries), increasing labor productivity, reducing advertising costs (choosing cheaper types of advertising) and implementing other measures.

In turn, reducing cash payments (expenses) should be aimed at improving contractual work (distribution of costs between parties to the transaction, using discounts and bonuses, etc.), minimizing indirect costs (costs for rent, advertising, management), and introducing resource-saving technologies and other events.

BUDGETING IS A TOOL FOR FINANCIAL LOGISTICS MANAGEMENT. Practical aspects of financial logistics include the organization, control and analysis of financing (the movement of financial flows) in the logistics system.

In the economic practice of commercial organizations, these aspects can be implemented through different methods or schemes, depending on the scale, specifics of the business entity and other factors.

In our opinion, the most effective tool for planning and controlling financial flows is budgeting.

It is advisable to plan the process of organizing budgeting and forming budgets in the context of the tasks of financial logistics formulated above.

The budget process in logistics is shown schematically in Fig. 2.

Figure 17. Budget process in the logistics management system

So, the budgeting process in the logistics management system includes the following stages:

1) Selection and justification of sources of financing business processes (logistics operations), calculation of the financial needs of departments.

At this stage, logistics specialists must determine the availability, types and sufficiency of funding sources. These include the organization’s profit, credit resources (credits and loans), depreciation charges, reserves and funds. The main source of financing is usually the profit of the organization. It is important to divide it into profit used to finance current activities, and profit used for investment and financial activities. The information base is accounting and financial reporting data (form No. 2). Also, department heads prepare a planned list of expense items, with their justification. For example, the expenses of the purchasing department include the cost of purchasing products, salaries of managers, rent, etc.

2) Financing the organization’s expenses by departments and areas of economic activity.

At this stage, based on the volume of operating budgets, expenses are financed in cash and/or non-cash forms. For example, the supply department is allocated funds for the purchase of material assets, financing of business expenses and other purposes. The funds received are reflected in the “Revenue” section of the supply (purchases) budget, the acquisition of material assets is reflected in the “Expenses” section, according to the corresponding expense items.

3) Formation of a budget for income and expenses, profits and losses in areas of economic activity and in the organization as a whole.

Based on the operating budgets of departments and areas of activity, a profit and loss budget is drawn up for the reporting or analyzed period (month, quarter, half-year, year). This budget summarizes the income and expenses of the organization, calculates gross profit, profit (loss) from sales, and net profit. In the practice of commercial organizations, the profit and loss statement (form No. 2 of the financial statements) is taken as the basis for the profit (loss) budget. At the same time, the specifics of economic activity and the need to detail income and expenses by type of activity should be taken into account. Therefore, it is recommended to develop and approve regulations (methodology) for the formation of general budgets (including the profit or loss budget), budget forms, formulas for calculating additional indicators of business efficiency, profitability, etc.

4) Budgetary control of income and expenses of the organization.

After presenting the operating budgets and the profit (loss) budget, it is necessary to check the compliance of the actual indicators with the control figures. For this purpose it is used plan-factual analysis. For the convenience of calculations and to save time, it is recommended to use budget forms with the columns “planned indicators”, “actual indicators”, “deviations of actual indicators from planned indicators, in amount and percentage”, “conclusions and proposals”.

The findings and proposals for eliminating identified budgeting shortcomings, improving business activities, and increasing the level of profitability can be presented in the form final report on budgeting results for the reporting period.

When forming a logistics budget, it is important to take into account all costs related to the logistics sector (supply, production, sales, warehouse logistics). Based on the list and volume of logistics costs, their financing is carried out, so it is necessary to include all costs in the budget. Otherwise, disagreements will arise with other services of the organization (for example, the technical department) due to the allocation of funds for certain expenses.

Below is an approximate budget format for warehouse expenses (warehouse logistics).

Table 2. Warehouse expenses budget, thousand rubles.

Naming of expenditures	Cost item code	Periods
January	February
Salary (cash portion)	1.1-24	360 000	396 000
Salary (non-cash part)	1.2-24	175 000	175 000
Personal income tax	1.2-24	51 480	51 480
Social expenses	4-24	59 500	59 500
Maintenance of loading equipment	6-24	24 000	27 600
Repair of loading equipment	7-24	11 000	12 300
Garbage removal	8-24	14 000	14 000
Other services of third parties: a) property insurance	9-24	150 000	-
b) insurance of loading equipment	10-24	67 000	-
c) rental of a forklift (for December)	11-24	8 000	-
General business expenses (purchase of special clothing, stationery, etc.).	12-24	87 000	94 600
Fare	5-24	4 670	5 100
Utility bills (electricity, water)	13-24	3 400	3 400
Total	-	1 026 050	838 980

As we can see, in February warehouse expenses decreased by 187,070 rubles. The task of logistics is to evaluate budget indicators and identify the reasons for their growth or decline. The decrease in warehouse maintenance costs is explained by the fact that in February there were no property insurance costs.

Financial logistics is a system of management, planning and control over financial flows based on information and data on the organization of material flows.

Financial flows are understood as the directed movement of funds or resources in logistics systems and between them, necessary to ensure material and information flows.

Financial flow is the directed movement of financial resources associated with the movement of material, information and other resource flows both within the logistics system and outside it. Financial flows arise from reimbursement of logistics costs and expenses, attraction of funds from financing sources, reimbursement (in monetary equivalent) for products sold and services provided to participants in the logistics chain.

The task of managing financial flows in logistics systems is complete and timely provision of volumes, timing and sources of financing. These funding sources must meet minimum price requirements.

Financial logistics faces the following tasks:

studying the financial market and forecasting sources of financing using marketing techniques;

determining the need for financial resources, selecting sources of financing, monitoring interest rates on bank and interbank loans, as well as interest rates on securities and government bonds;

construction of financial models for the use of funding sources and an algorithm for the movement of cash flows from funding sources;

establishing the sequence and links of the movement of funds within the business and project;

coordination of operational management of financial and material flows. First of all, costs are assessed, for example, for the delivery of goods by vehicle. The logistics manager builds material flows taking into account costs;

formation and regulation of free balances in ruble, foreign currency and budget accounts in order to obtain additional profit from transactions in the financial market using high-yield financial instruments;

creation of operating systems for processing information and financial flows.

The principles of financial logistics include:

self-regulation to achieve a balance between the flow of cash resources and the movement of material resources, production and minimization of production costs;

flexibility associated with the possibility of making changes to the financing schedule for the acquisition of materials necessary for the implementation of the finished product project and when adjusting the order conditions from consumers or partners;

minimizing production costs while maximizing short project implementation cycles;

integration of financing, supply, production and sales processes in a single project implementation body;

modeling the movement of cash flows from funding sources to project implementers with the circulation of free funds with maximum efficiency;

correspondence of financing volumes to the volumes of necessary expenses;

use of software and computer networks for financial management;

reliability of sources of financing and provision of financial resources for the project;

profitability (through assessment of not only costs, but also the “pressure” on these costs);

profitability when placing funds.

As you know, a key aspect of logistics activities is the management of material flows: the movement of raw materials, materials, semi-finished products and finished products. Each material flow that arises during the purchase of materials or sales of products, transportation or storage of goods is accompanied by a financial flow: investment of finance or compensation for the sale of goods.

When preparing and organizing logistics processes, in addition to planning material flows, it is necessary to calculate and think through financial flow patterns. Thus, in international relations, the choice of delivery terms CIF and FOB affects the distribution of costs of freight and insurance between the buyer and the cargo supplier. During transportation, costs for damage to cargo are borne by either the carrier or the supplier, depending on the contractual terms, the actual characteristics of the cargo, and the data of title documents. Changing the parameters of the warehousing system affects the safety and quality of the goods, and therefore the cost of services. Selling goods on your own, with the help of sales agents, commission agents or consignors, requires different expenses, provides different turnover of goods and the duration of the financial cycle.

For each scheme of movement of material resources, several options for organizing financial flows, varying in cost and risk, can be provided. Financial institutions, third-party enterprises, consumers, the state, and foreign entities are involved as investors and lenders, each of which offers resources on different terms. By calculating the moment when a financial deficit occurs, it is possible to attract resources in the required amount and within the required time frame and return them when sufficient income is received.

The choice of suppliers and sources of resources, methods of payment for services to carriers, and the order of location of goods in the warehouse is also most rationally carried out according to financial parameters, since they ensure the comparability of heterogeneous estimates. You can assess the feasibility of refurbishment of a warehouse terminal by comparing the expected increase in cargo flow and revenue per unit of time with the size of the required investment. By comparing losses and income, the cost of hedging risks and the possibility of eliminating them, it is possible to construct such schemes for the movement of financial and material flows in which logistics costs will be optimal.

In order to fulfill production plans, deliver goods to their destination at the right time, and obtain sufficient income from consumers, financing plans must be met. The rising cost of materials forces us to attract additional sources of financing or change production technologies. A fall in the prices of bills accepted as collateral for payment for supplies can lead to loss of revenue and a breakdown in relations between suppliers and consumers. Control and adjustment of deviations in the parameters of financial flows are necessary both for individual participants in logistics activities and for the system as a whole.

The parameters of financial flows also serve as indicators of the well-being and sustainability of enterprises, indicate the effectiveness of logistics activities, and are necessary when planning and organizing relationships with counterparties. Thus, when drawing up the budget for the current year, they predict the size of future revenues and necessary investments, calculate profitability and profitability indicators, which are used in preparing financial statements, justifying the attraction of investments and loans, concluding contracts and agreements.

Financial flow is characterized by volume, cost, time and direction. Additional characteristics can be determined based on the specifics and needs of the enterprise and its place in the logistics system. The volume of the flow is indicated in its documentary, electronic or any other accompaniment in monetary units. The cost of a flow is determined by the costs of its organization, and time characterizes its availability for influence. Both the time and the direction of financial flow are determined in relation to the enterprise organizing it. There are incoming and outgoing flows in relation to participants in logistics relations. For example, receiving an advance payment is an incoming flow, and payment for supplies is an outgoing flow.

The characteristics of financial flows are based on information about the conditions, timing and nature of the relationships between participants in the logistics process, data on the parameters of resources and the movement of material flows. For all movements of funds from the enterprise to other participants in the logistics process (consumers and suppliers, between warehouse, port and customs terminals, at logistics junctions of transport flows), the time and volume of receipts and investments, the cost of credit funds are calculated, the directions of the resulting flows are determined, etc. characteristics necessary for flow control.

The concept of resulting financial flow is associated with several flows. Here we should introduce the concept of a financial transaction - a set of two or more interrelated financial flows. For example, attracting resources, investing them in production and receiving proceeds from sales is a financial operation consisting of at least three flows.

For financial transactions, parameters such as profitability and profitability are determined, showing how effective the impact on flows is. Based on financial transactions, you can determine a number of other parameters that are essential for managing financial flows. For example, for a distribution logistics center, in which the inflow and outflow of financial resources occurs unevenly, it is important to calculate the density of financial flow, which characterizes the intensity of activity and is determined by the volume of the resulting flow per unit of time. When organizing procurement, you can calculate the time gap between receiving information from the supplier (incoming information flow) and making an advance payment (outgoing financial flow).

Thus, financial flows perform a number of important functions in ensuring, accounting and coordinating the movement of resources in logistics processes. Financial parameters largely determine the economic viability of enterprises, stability in the market, and the strength of relationships with suppliers and consumers. It is difficult to overestimate the importance of financial flow management for logistics systems.

Principles of financial flow management

Strategic and tactical tasks of financial logistics

Logistics costs, classification, evaluation and planning

Contents, functions and principles of financial logistics

In a market economy, the activities of business entities largely depend on the continuous movement and effective use of financial flows. Financial flows are closely related to the sale of goods and services, investments, supplies of material assets and equipment, banks, stock exchanges, insurance companies, technological processes, etc. Financial flow schemes are necessarily developed in all foreign corporations and banks.

In international business practice, financial logistics is understood as optimizing the company’s financial mechanism, coordinating financial flows and operations, ensuring orderliness and accurate “balancing”.

An important feature of financial logistics is the need to consider financial flows in connection with production, transport, supply, sales and other economic functions of the enterprise.

Thus, financial logistics is a management system (including planning and control) of financial flows based on information and data on the organization of material flows.

Principles of financial flow management

Financial and material flows are managed with the support of information technologies and systems. The function of information flows in logistics systems is to ensure communication interaction between participants in logistics relations. Financial logistics uses numerous indicators of information flows, for example, expected timing and volumes of deliveries, shipping time, payment methods, etc. In addition to information directly related to commodity flows, information is received about the external environment: data on market conditions, total sales volume of a given segment , market demand for finished products, price changes, strategies of possible competitors, etc. Information flows in the logistics system are determined by the specific needs of financial management when performing individual functions of planning, regulation, analysis and control.

Financial flow refers to: a) any movement of financial resources in the macro- or microeconomic environment; b) the movement of financial assets only in logistics systems or between them.

Financial flows in one form or another have always existed in any way of organizing the entrepreneurial activities of economic entities. However, practice has shown that the greatest efficiency in movement is achieved by applying the logistics principles of managing material and financial resources.

Thus, under financial flow in logistics should be understood the directed movement of financial resources circulating in the logistics system, as well as between the logistics system and the external environment, necessary to ensure the effective movement of a certain flow of goods.

Chapter 13. Financial logistics

The importance of optimizing the movement of financial flows of enterprises. Definition of financial logistics and its goals. The concept of financial flow. Classification of financial flows. Stages of the cash flow cycle in the book business. Financial stability of the enterprise. Stages of financial flow management. External and internal factors affecting the financial flows of the enterprise. Stages of the logistics financial cycle. Ways to maximize cash flows received at the end of the logistics cycle. The main factors influencing the speed of financial flows. Financial image of the company.

Goals and objectives of financial logistics

Optimization of the movement of material flows in logistics systems is largely achieved by improving their servicing with financial flows. Only financial resources can be converted into any other types: use them to buy goods, services, information, pay staff, etc. In this regard, the effective movement of cash flows is an important condition for the functioning of a book publishing enterprise.

Changes in the magnitude, speed and other parameters of financial flows significantly affect the movement of material flows. For example, increasing the speed of cash flow due to faster payment processing can lead to faster receipt of goods in a bookselling enterprise and reduce the required level of inventory of goods. The lack of power of financial flows or the slow speed of their receipt by a publishing company can cause a reduction in the range of book products it produces.

All this indicates the importance of studying and optimizing the movement of financial flows of enterprises. At the same time, it should be noted that the movement of financial flows in relation to their servicing of flows of goods and services is the least studied area of logistics. In the literature on logistics, financial issues are only mentioned and do not receive sufficient coverage, however, financial management is showing increasing interest in the problem of managing financial flows.

Financial flows arise and are used in the book business to ensure the efficient passage of book products throughout the entire logistics cycle of its production and distribution, from the origin of the idea of a future publication to the purchase of the book by the consumer. Financial flows serve the processes of transfer of ownership and movement of raw materials and goods in space and time. Taking this into account, we can give the following definition of logistics financial flow.

Financial flow in logistics - this is the movement of financial resources circulating in the logistics system, as well as between the logistics system and the external environment, necessary to ensure the effective movement of goods flow.

The financial flow of an enterprise consists of receipts and payments of funds generated in the process of business activities distributed over time.

Any book business enterprise must earn money as a result of selling the products of its activities (book goods and services), and then invest (invest) the money received in the production of new goods (services). At the same time, a normally operating enterprise should make a profit from its activities. This constantly repeating process is called the “cash flow cycle.” The cash flow cycle accompanies the logistics cycle of the movement of goods (services) (Fig. 42
).

Financial flows are varied in composition, directions of movement, purpose and other characteristics. In order to optimize their movement in logistics systems, flows must be classified. is given in table. 14.

The division of flows according to the direction of movement is of greatest importance. Positive and negative flows are interconnected. The insufficiency of the volumes of one type of flow in a specific period of time causes a reduction in the volumes of another type. Therefore, in the enterprise cash flow management system, they should be considered as a single (complex) management object.

Net cash flow is the most important result of the financial activity of an enterprise, largely determining its financial stability.

Table 14

Classification feature	Stream type
Direction of movement	Positive(cash inflow, cash inflow) Negative(cash payments, cash outflow)
Calculus method	Gross- the totality of receipts and expenditures of funds Net cash flow- the difference between positive and negative cash flows (between the receipt and expenditure of funds)
By purpose	Purchasing- servicing the process of purchasing goods Industrial- servicing production process Sales- servicing the sales process of finished products
Frequency of occurrence	Regular- regularly arises in business activities (salaries, tax payments, etc.) Discrete- arises when carrying out one-time, single transactions (for example, buying real estate)
Sufficiency level	Excess- cash receipts significantly exceed the enterprise’s real need to spend them In short supply- receipts are significantly lower than the real needs of the enterprise in their expenditure
Scale	For the enterprise as a whole- accumulates all types of funds of the enterprise For certain types of enterprise activities By individual structural divisions(responsibility centers) of the enterprise For individual business transactions
Type of economic activity	Accompanying the movement of products(payments to suppliers, employees, tax authorities, receipts from product buyers, etc.) Accompanying investment activities(sale and purchase of fixed assets, real estate, intangible assets) Accompanying financial activities(receipt and payment of loans, attraction of additional share capital, payment of dividends)

Financial logistics in the book business - This is a section of logistics that studies the optimization of financial flows directed to the acquisition of resources and received by book business enterprises from buyers of book products and partners in the movement of book products in the logistics chain.

Let's consider which The cash flow cycle consists of stages in book business.

In the book business there are the following forms of financial relationships between publishing houses and booksellers:

Payment to the publisher only for book goods sold by the bookselling enterprise. In this case, unsold books are returned to the publisher after a certain period.

Purchase with deferred payment (with or without the right to return unsold books). In this case, a payment deadline is set.

Purchase with simultaneous payment and no right to return unsold books.

Purchase with advance payment.

Financing of publishing projects: a bookselling or some other company pays the publishing house for the publication of a book and becomes the owner of the circulation.

The bookselling (or some other company) finances part of the costs (for paper, printing, transport services) and participates in an agreed share of the profits from the sale of the edition.

Only after these costly flows (investment of funds) does the publisher begin to receive money from bookselling enterprises for the book goods they bought (or sold).

As we can see, the expenditure and receipt of funds of enterprises is characterized by significant unevenness (Fig. 43
). Therefore, if business managers do not pay due attention to financial logistics, they may periodically discover that at the right time there is not enough money in the company’s accounts. You have to take out a loan, and since this needs to be done urgently, there is no time left to search and select the optimal conditions for borrowing money, the amounts and terms of the loan. The development of this negative situation further leads to a violation of the loan payment schedule, and, consequently, to penalties.

Another situation is also possible - the uncontrolled flow of money into the company’s accounts makes it difficult to optimize tax payments and leads to the formation of temporarily free funds. Available funds lose their value over time due to inflation and other reasons. Consequently, optimization of cash flows should include balancing them by type, volume, timing and other characteristics, as well as increasing the net cash flow of the enterprise. At the same time, cash flows must be subordinated to the fulfillment of the enterprise’s mission and the goals of its activities in the book market.

The need to optimize the cash flow of an enterprise is determined by the following basic provisions.

Cash flows are the “financial blood circulation” of an enterprise; they serve almost all aspects of business activity. Properly organized cash flows are the most important condition for obtaining effective results from an enterprise.

Financial stability of the enterprise is largely determined by how different types of cash flows are synchronized with each other in time, in the direction of movement, etc. Insolvency can occur even for enterprises that receive a sufficient amount of profit due to an imbalance of receipts and payments over time.

Rational formation of cash flows helps to increase the rhythm of all logistics processes of the enterprise. Any failure to make payments has a negative impact on the formation of inventories of raw materials, labor productivity, sales of finished products, etc. Effectively organized financial flows create conditions for optimizing the movement of all other types of flows (material, information, personnel, service).

By actively managing cash flows, you can ensure a more rational and economical use of your own financial resources and reduce the need for borrowed capital.

Synchronizing the flow of receipts and payments of money allows you to reduce the real need of the enterprise for free cash balances, which contributes to the formation of additional resources that can be directed to investments that are a source of profit.

The following are distinguished: stages of financial flow management:

As already noted, the main goal of optimizing the cash flow of an enterprise is to ensure its financial stability and competitiveness in the book market. The most important prerequisite for optimization is the study of factors affecting financial flows. There are external and internal factors, or factors of the external and internal environment of the enterprise.

The main external factors include:

Book market conditions. The market environment has a significant impact on the receipt of funds from sales of products. The higher the demand for book products, the better they sell and the greater the revenue stream from sales. A decline in demand, on the contrary, reduces the flow of revenue from the sale of goods, which can lead to a shortage of funds for the enterprise and the accumulation of significant inventories of products that cannot be sold.

Industry practice of lending to suppliers and buyers of products. This practice determines the established procedure for purchasing products - on the terms of prepayment, cash payment, deferred payment (commercial loan). As we have already mentioned, the main form of relationship between publishers and booksellers is the supply of products on deferred payment terms.

Tax system. Its changes affect the volume and nature of tax payments of the enterprise. Recently, value added tax has become important in the book business. The fact that book products were not subject to this tax allowed the industry to allocate significant funds to the development of the book business.

Conditions of the financial and credit markets. The state of the financial market affects the price of the company's shares. In addition, financial market conditions determine the possibility of effectively using the enterprise's free funds by purchasing shares, and also affects the receipt of funds from the securities it already has (dividends, interest).

Depending on the conditions of the credit market, the volume of banks’ supply of “expensive” or “cheap” (interest rate), “short” or “long” (loan terms) money increases or decreases, which affects the possibility of generating the enterprise’s cash flows from this source.

The main internal factors influencing the cash flows of an enterprise are:

By selling goods or services, the company receives revenue, which is used to cover costs and pay taxes. The remaining part forms the profit (or loss, if the revenue was not enough for the specified payments) of the enterprise. The profit of the enterprise is used for various purposes. At certain moments in the life of an enterprise, the need arises to attract borrowed funds to ensure its activities.

Optimization of financial flows consists of managing the stages of the logistics financial cycle: purchasing, production, distribution activities.

At the first stage, money should be optimally invested in materials, goods, information, labor and other production resources.

At the production stage, the invested money goes into finished products, and it is necessary to ensure the competitiveness of the goods (services) produced. The costs incurred must create a use value that ensures their coverage and the receipt of the planned profit.

At the sales stage, goods are transferred into cash as they are sold, cash flow begins, and net cash flow is formed. However, it should be remembered that this process determines not only the direct receipt of cash flows, but also the position of the enterprise in the market, its image, reliability as a business partner, which are also important for operating results.

Using the money raised, the logistics cycle is repeated again. The duration of the full turnover of working capital (from their advance into resources to the receipt of money for goods sold) is characterized by turnover. The financial position of the enterprise, its solvency, the need for additional sources of financing, etc. depend on the speed of turnover of financial flows. Thus, optimization of cash flow should be aimed at implementing the circulation of financial resources, their uninterrupted and prompt flow from monetary form to raw materials, finished products , goods and again into monetary form.

In addition to accelerating the financial cycle, optimizing financial flows involves maximizing the inflow of funds and minimizing the outflow (by reducing the volume or slowing down the speed of outflow).

Exists three main ways to maximize cash flow, received at the end of the logistics cycle of their movement, i.e. as a result of the sale of produced goods and services:

Increasing the difference between revenue from the sale of goods (services) and costs. This can be achieved by cutting costs and/or increasing product prices. This method must be used with caution, since reducing costs can lead to a decrease in the quality of goods (services) to an uncompetitive level, and increasing prices can lead to a reduction in the amount of goods sold and a decrease in the speed of cash flow.

Acceleration of cash flow. The faster finished products are produced from purchased raw materials, and the latter are converted into cash receipts as a result of sales, i.e. The faster the logistics cycle is completed, the faster the cash turnover occurs. The acceleration of cash flow, in turn, leads to the fact that more cash can be obtained from the same initial resources in the same time.

For example, in order to sell books worth 100 thousand rubles. per month, the bookstore can choose one of the following options. Purchase all goods at once, ensuring the planned sales volume. To do this, he must immediately spend 70 thousand rubles.

But this option is also possible: the store first buys goods in the same assortment, but in fewer copies, for example, for 35 thousand rubles, and then repeats this purchase again. As a result, the same result (sales worth 100 thousand rubles) can be achieved by using half as much money.

The acceleration of cash flow also occurs due to the acceleration of the sale of goods, so in some cases it is advisable to increase costs (for example, for faster delivery of goods) or reduce prices in order to reduce the duration of the logistics cycle and ultimately make a profit faster.

Eliminate unnecessary expenses, loss and damage to goods. When improving the logistics process of an enterprise, it is necessary to constantly ensure that unnecessary operations, links, and structures do not arise that lead to unjustified costs. In addition, due care should be taken to ensure the safety of materials, goods and other property. When solving these problems, as well as those mentioned above, it is necessary to apply the concepts of trade-offs, total costs, and others. For example, free access of buyers to goods can lead to an increase in losses of goods due to theft and increased defects, but, on the other hand, it helps to increase sales and increase turnover.

In general, it should be noted that the costs of funds and other resources do not exist on their own. They always appear when you need to get some result. Based on this, it is advisable to first evaluate not the level of costs, but the relationship between them and the results obtained. Effective cost control requires the use of the total cost principle, otherwise costs can be reduced at a particular stage by simply moving them to another stage of the logistics cycle. For example, the purchase of cheaper raw materials leads to longer and more expensive processing, savings on transportation costs lead to higher costs for increasing inventory, etc.

All costs for the production and sale of goods should be considered integrally - as the amount that the consumer must ultimately pay in order to receive the goods and benefit from them. The buyer is not at all interested in how costs are distributed among the participants in the supply chain (publishers, printers, booksellers); he will buy a book if its price corresponds to his financial capabilities, and also corresponds to his assessment of whether the benefit he acquires in this product deserves the required financial expenditure.

This is an economic category in which the interests of sellers and consumers converge. For consumers, the price of a product is, first of all, an indicator of its consumer properties. For manufacturers, price is an estimate of the costs they have incurred and the level of profit they expect. Pricing issues are discussed in more detail in Section. 6.4.

In addition to the speed and power of cash flows received for goods sold, the movement of flows within the enterprise should be optimized. Here we examine the question of what money is spent on and how money is earned at the enterprise, in the context of its centers of responsibility. An enterprise's responsibility center is one or more structural divisions of a company in which financial flows that are important for the enterprise are formed. Typically, responsibility centers are divided into revenue centers and cost centers. For example, the main income center of a bookstore is the structural unit involved in the sale of goods on the sales floor; the cost centers are the transport service, warehousing, etc.

The speed of movement of financial flows is influenced by the speed of money passage in mutual settlements between enterprises: each commodity flow must have its own financial flow. For example, a publishing house (seller company), on the basis of a concluded sales contract, supplies a bookstore (buyer company) with the products it has purchased (material flow). The bookstore, carrying out the form of payment specified in the contract, pays for the supply of these products (financial flow) (Fig. 44).

As a rule, in mutual settlements, enterprises use funds accumulated in their bank accounts. In this case, the financial flow diagram should also include banking institutions (Fig. 45
).

The size, start and end time of the financial flow are determined by the terms of payment established in the purchase and sale agreement (for example, payment upon receipt of goods, payment after the sale of goods, provision of discounts, etc.). In this case, the purchasing company can use its own or borrowed funds for payment.

Since the bulk of settlements between manufacturing enterprises, suppliers and sellers of book goods are carried out by making payments through banks, an important factor is the speed of flows in banking institutions, i.e. level of financial and credit services. In addition to the speed of customer service, financial and credit services involve providing businesses with a variety of payment options, discounts and benefits, various forms and conditions of lending, etc. In this regard, it is important for book business enterprises to work with reliable banks that provide a high level of financial service.

Optimizing financial flows involves not only accelerating the financial cycle and maximizing the influx of funds (income), but also the effective management of earned funds - profit. After paying all expenses and paying taxes, the enterprise generates a net cash flow, i.e. the difference between positive and negative cash flows (between the receipt and expenditure of funds). It is spent on two main directions:

sent for consumption by employees and owners of the enterprise;

accumulates and increases the property of the enterprise.

Consumed part of profit is paid in the form of income to owners, bonuses and benefits to employees of the enterprise, and also goes to the social development of the team (improving social conditions of work and rest).

Capitalized (accumulated) part of profit sent to:

for the development of the enterprise through its expansion, creation of new directions and structures, modernization, and introduction of modern technologies. These costs should ensure an increase in income and an increase in the speed of financial flows at book publishing enterprises;

in external financing objects - investing in new enterprises, providing loans, purchasing shares, securities, etc.

There must be a certain optimum between the consumed and capitalized parts of the profit, which changes at different stages of enterprise development.

The bulk of capitalized profits goes to investments. Investments are the placement of funds in various projects with the aim of increasing invested capital and generating income. Increasing cash flows in the future is the main goal of investment activities.

Before investing funds, it is necessary to develop a business plan for the project being invested. A business plan is a document that characterizes the main sources of financing for the project, marketing, personnel, technological aspects of its implementation, as well as its financial efficiency. It is presented to investors and gives them the opportunity to familiarize themselves with the planned results of the project, payback periods for investments, guarantees of their return, etc.

As a result of optimization of financial flows, financial stability of the enterprise, i.e. stable availability of financial resources sufficient to fulfill financial obligations, the company's ability to finance its activities, long-term financial balance. Financial stability is achieved through the stable maintenance of a competitive level of profit, ensuring the expanded development of the enterprise and the implementation of the goals of its activities.

In modern concepts of logistics, the development of relationships between an enterprise and its partners and its behavior in the external environment are of great importance for the effective functioning of logistics chains for promoting book goods to consumers. One of the main factors in business relationships is financial logistics, which ensures the timeliness and efficiency of financial relationships, mutual settlements with partners, clients, government agencies, investors, borrowers, founders, etc. Accuracy, timeliness, stability of financial relations create a positive financial image not only from the company’s partners, but also from possible investors, competitors, and government agencies. Improving the financial image of the company ensures an increase in the price of its shares, and, consequently, an increase in external sources of financing. As the stock price rises, the firm's weight in the business world increases, and it becomes more difficult for competitors to absorb it by buying up shares.

The financial image of a company consists of the following aspects:

fulfillment by the enterprise of financial and other obligations to suppliers, clients, creditors, the state, etc.;

compliance of the mission and goals of the company with the needs of the market, the needs and interests of consumers and partners, legislation and moral standards and principles of business activity;

quality of financial management (ensuring high rates of enterprise development, financial stability, etc.).

Financial logistics
Goals and objectives of financial logistics
Optimization of the movement of material flows in logistics systems is largely achieved by improving their servicing with financial flows. Only financial resources can be converted into any other types: use them to buy goods, services, information, pay staff, etc. In this regard, the effective movement of cash flows is an important condition for the functioning of a book publishing enterprise.
Changes in the magnitude, speed and other parameters of financial flows significantly affect the movement of material flows. For example, increasing the speed of cash flow due to faster payment processing can lead to faster receipt of goods in a bookselling enterprise and reduce the required level of inventory of goods. The lack of power of financial flows or the slow speed of their receipt by a publishing company can cause a reduction in the range of book products it produces.
All this indicates the importance of studying and optimizing the movement of financial flows of enterprises. At the same time, it should be noted that the movement of financial flows in relation to their servicing of flows of goods and services is the least studied area of logistics. In the literature on logistics, financial issues are only mentioned and do not receive sufficient coverage, however, financial management is showing increasing interest in the problem of managing financial flows.
Financial flows arise and are used in the book business to ensure the efficient passage of book products throughout the entire logistics cycle of its production and distribution, from the origin of the idea of a future publication to the purchase of the book by the consumer. Financial flows serve the processes of transfer of ownership and movement of raw materials and goods in space and time. Taking this into account, we can give the following definition of logistics financial flow.
Financial flow in logistics is the movement of financial resources circulating in the logistics system, as well as between the logistics system and the external environment, necessary to ensure the effective movement of goods flow.
The financial flow of an enterprise consists of receipts and payments of funds generated in the process of business activities distributed over time.
Any book business enterprise must earn money as a result of selling the products of its activities (book goods and services), and then invest (invest) the money received in the production of new goods (services). At the same time, a normally operating enterprise should make a profit from its activities. This constantly repeating process is called the “cash flow cycle.” The cash flow cycle accompanies the logistics cycle of the movement of goods (services)

Net cash flow is the most important result of the financial activity of an enterprise, largely determining its financial stability.

Classification of financial flows.
Classification feature
Direction of movement
1. Positive (cash inflow, cash inflow)
2. Negative (cash payments, cash outflow)
Calculus method
1. Gross - the entire totality of receipts and expenditures of funds
2. Net cash flow - the difference between positive and negative cash flows (between the receipt and expenditure of funds)
By purpose
1. Purchasing - servicing process of purchasing goods
2. Production - servicing production process
3. Sales - the servicing process of selling finished products
Frequency of occurrence
1. Regular - occurs regularly in business activities (salaries, tax payments, etc.)
2. Discrete - occurs when carrying out one-time, single transactions (for example, buying real estate)
Sufficiency level
1. Excessive - cash receipts significantly exceed the enterprise’s real need to spend them
2. Scarce - revenues are significantly lower than the real needs of the enterprise in their expenditure
Scale
1. For the enterprise as a whole - accumulates all types of funds of the enterprise
2. For certain types of activity of the enterprise
3. For individual structural divisions (responsibility centers) of the enterprise
4. For individual business transactions
Type of economic activity
1. Accompanying the movement of products (payments to suppliers, employees, tax authorities, receipts from product buyers, etc.)
2. Accompanying investment activities (sale and purchase of fixed assets, real estate, intangible assets)
3. Accompanying financial activities (receiving and paying loans, attracting additional share capital, paying dividends)

The main goal of optimizing the movement of financial flows in logistics is to ensure the movement of material flows (service flows) with financial resources in the required volumes, at the right time, using the most effective sources of financing, i.e. in accordance with the “seven H” logistic rule. This is achieved in two main ways: timely receipt of funds to the enterprise in the amount necessary to finance its further activities; ensuring efficient spending of funds that is profitable and consistent with the mission of the enterprise.
Financial logistics in the book business is a section of logistics that studies the optimization of financial flows directed to the acquisition of resources and received by book business enterprises from buyers of book products and partners in the movement of book products in the supply chain.
Let's consider what stages the cash flow cycle in the book business consists of.
Example
The publisher spends money to purchase copyrights for a finished work or finances the creation of a book manuscript. As a result, he receives the manuscript and the right to publish it. In advance, it is advisable for the publisher to spend certain funds on marketing research, which will provide him with information for making decisions about the acquisition of the manuscript, the form of its publication, circulation, and promotion channels.
The publisher spends money on preparing the manuscript for printing (editorial and publishing expenses). As a result, he receives the original layout of the publication.
The publisher purchases paper and other printing materials and pays printing expenses. As a result, he receives a copy of the book.
The publisher spends money on advertising and promotion of the book, its placement on the book market using logistics chains that are most effective for selling this book.
In some cases, the publisher finances bookselling enterprises by providing them with trade credit.
In the book business, there are the following forms of financial relationships between publishing houses and bookselling enterprises:
Payment to the publisher only for book goods sold by the bookselling enterprise. In this case, unsold books are returned to the publisher after a certain period.
Purchase with deferred payment (with or without the right to return unsold books). In this case, a payment deadline is set.
Purchase with simultaneous payment and no right to return unsold books.
Purchase with advance payment.
Financing of publishing projects: a bookselling or some other company pays the publishing house for the publication of a book and becomes the owner of the circulation.
The bookselling (or some other company) finances part of the costs (for paper, printing, transport services) and participates in an agreed share of the profits from the sale of the edition.
Only after these costly flows (investment of funds) does the publisher begin to receive money from bookselling enterprises for the book goods they bought (or sold).
As we can see, the expenditure and receipt of funds by enterprises is characterized by significant unevenness (Fig. 43). Therefore, if business managers do not pay due attention to financial logistics, they may periodically discover that at the right time there is not enough money in the company’s accounts. You have to take out a loan, and since this needs to be done urgently, there is no time left to search and select the optimal conditions for borrowing money, the amounts and terms of the loan. The development of this negative situation further leads to a violation of the loan payment schedule, and, consequently, to penalties.
Another situation is also possible - the uncontrolled flow of money into the company’s accounts makes it difficult to optimize tax payments and leads to the formation of temporarily free funds. Available funds lose their value over time due to inflation and other reasons. Consequently, optimization of cash flows should include balancing them by type, volume, timing and other characteristics, as well as increasing the net cash flow of the enterprise. At the same time, cash flows must be subordinated to the fulfillment of the enterprise’s mission and the goals of its activities in the book market.
The need to optimize the cash flow of an enterprise is determined by the following basic provisions.
Cash flows are the “financial blood circulation” of an enterprise; they serve almost all aspects of business activity. Properly organized cash flows are the most important condition for obtaining effective results from an enterprise.
The financial stability of an enterprise is largely determined by how different types of cash flows are synchronized with each other in time, in the direction of movement, etc. Insolvency can occur even for enterprises that receive a sufficient amount of profit due to an imbalance of receipts and payments over time.
Rational formation of cash flows helps to increase the rhythm of all logistics processes of the enterprise. Any failure to make payments has a negative impact on the formation of inventories of raw materials, labor productivity, sales of finished products, etc. Effectively organized financial flows create conditions for optimizing the movement of all other types of flows (material, information, personnel, service).
By actively managing cash flows, you can ensure a more rational and economical use of your own financial resources and reduce the need for borrowed capital.

Cash flow management ensures acceleration of the enterprise's capital turnover by reducing production and financial cycles, reducing the need for capital serving the economic activities of the enterprise.
Synchronizing the flow of receipts and payments of money allows you to reduce the real need of the enterprise for free cash balances, which contributes to the formation of additional resources that can be directed to investments that are a source of profit.

The following stages of financial flow management are distinguished:
Accounting for their movement. Like the management of all other types of logistics flows, cash flow management must be provided with the necessary information. Accounting provides this information.
It should be noted that external consumers should also have financial information about the company’s activities. Owners (current and potential), government organizations, creditors (for example, suppliers of goods who sell them on credit), and consumers (clients) are interested in obtaining information about the financial condition of a company. Each of the interest groups uses financial information for its own purposes. Potential owners - to decide on the acquisition of shares, suppliers - to determine the terms of delivery, government agencies - to monitor the correct payment of taxes, etc.
Analysis of cash flows based on accounting data.
It is determined whether the enterprise has enough funds, whether they were used effectively, whether a balance was achieved in the flow of receipts and payments of funds, etc.
The analysis should be carried out both for the enterprise as a whole and for individual areas of its activity, as well as for individual structural divisions. As a result of the analysis, opportunities are identified:
- reducing the enterprise’s dependence on external sources of raising funds;
- balance of receipts and payments in terms of time and volume;
- relationships between cash flows by type of economic activity of the enterprise;
- increasing the amount of net cash flow (profit).
Cash flow planning is carried out both for the enterprise as a whole and in the context of its various types of activities. Since the development of the financial situation in the future is a process characterized by significant uncertainty, it is advisable to carry out planning in the form of developing several options corresponding to different scenarios for the development of events (optimistic, realistic, pessimistic).
Control of cash flows: fulfillment of planned indicators, uniformity of cash flow formation over time, efficiency of use of cash flows, solvency of the enterprise, net cash flow.
As already noted, the main goal of optimizing the cash flow of an enterprise is to ensure its financial stability and competitiveness in the book market. The most important prerequisite for optimization is the study of factors affecting financial flows. There are external and internal factors, or factors of the external and internal environment of the enterprise.
The main external factors include:
Book market conditions. The market environment has a significant impact on the receipt of funds from sales of products. The higher the demand for book products, the better they sell and the greater the revenue stream from sales. A decline in demand, on the contrary, reduces the flow of revenue from the sale of goods, which can lead to a shortage of funds for the enterprise and the accumulation of significant inventories of products that cannot be sold.
Industry practice of lending to suppliers and buyers of products. This practice determines the established procedure for purchasing products - on the terms of prepayment, cash payment, deferred payment (commercial loan). As we have already mentioned, the main form of relationship between publishers and booksellers is the supply of products on deferred payment terms.
Tax system. Its changes affect the volume and nature of tax payments of the enterprise. Recently, value added tax has become important in the book business. The fact that book products were not subject to this tax allowed the industry to allocate significant funds to the development of the book business.
Conditions of the financial and credit markets. The state of the financial market affects the price of the company's shares. In addition, financial market conditions determine the possibility of effectively using the enterprise's free funds by purchasing shares, and also affects the receipt of funds from the securities it already has (dividends, interest).
Depending on the conditions of the credit market, the volume of banks’ supply of “expensive” or “cheap” (interest rate), “short” or “long” (loan terms) money increases or decreases, which affects the possibility of generating cash flows of the enterprise from this source.
The main internal factors influencing the cash flows of an enterprise are:
Duration of the logistics cycle. The shorter the duration of the logistics cycle, the faster the purchased materials are converted into finished products and sold to customers, and the more money turns around, bringing profit as a result of the completion of each cycle. At the same time, the acceleration of financial flows not only does not lead to an increase in the need for working capital, but even reduces the size of this need.
Seasonality of demand and product sales. Significantly affects the formation of cash flows over time, causing the formation of both temporarily free funds and an increase in costs. An example of seasonal fluctuations in the book business is the need to produce and purchase educational publications by the beginning of the school year, an increase in sales for the New Year holidays and their decrease in the summer season.
Financial mentality of owners and qualifications of company managers. They affect the choice and implementation of the financial policy of the enterprise. The owners distribute the income of the enterprise and decide whether it will be actively invested in its development or directed to other needs. Managers implement the financial policies developed by the owners, so the level of their qualifications, which determines the effectiveness of their decisions, becomes important here.
Enterprise life cycle. Different stages of an enterprise's life cycle are characterized by different volumes and structure of cash flows. The following stages of a company's life cycle are distinguished:
1) Entering the market. At this stage, the enterprise has a small profit, and sometimes even losses, since sales volumes are small, and the costs of organizing production and sales are very significant.
2) Enterprise growth. This stage is characterized by a high rate of increase in the output of products (services) and its sales. This leads to a noticeable increase in profits. There is an active investment of profits in new areas of activity, in the development of new markets, products, etc.
3) Maturity. At this stage, the company’s economic growth rates may slow down, and its business goals and strategies may be revised. At the same time, the best enterprises are constantly looking for new competitive advantages and continuously improving their products. This position allows you to increase the duration of the growth and maturity stages indefinitely.
4) Decline in activity. The growth of the enterprise stops, sales volumes and profits decrease, competitiveness and financial stability decrease. All this can lead to the company leaving the market. The recession stage can be caused by both objective external factors (for example, a decrease in demand for these goods), and mistakes made by the management of the enterprise, unused opportunities, etc.

Optimization of financial flows
By selling goods or services, the company receives revenue, which is used to cover costs and pay taxes. The remaining part forms the profit (or loss, if the revenue was not enough for the specified payments) of the enterprise. The profit of the enterprise is used for various purposes. At certain moments in the life of an enterprise, the need arises to attract borrowed funds to ensure its activities.
Optimization of financial flows consists of managing the stages of the logistics financial cycle: purchasing, production, distribution activities.
At the first stage, money should be optimally invested in materials, goods, information, labor and other production resources.
At the production stage, the invested money goes into finished products, and it is necessary to ensure the competitiveness of the goods (services) produced. The costs incurred must create a use value that ensures their coverage and the receipt of the planned profit.
At the sales stage, goods are transferred into cash as they are sold, cash flow begins, and net cash flow is formed. However, it should be remembered that this process determines not only the direct receipt of cash flows, but also the position of the enterprise in the market, its image, reliability as a business partner, which are also important for operating results.
Using the money raised, the logistics cycle is repeated again. The duration of the full turnover of working capital (from their advance into resources to the receipt of money for goods sold) is characterized by turnover. The financial position of the enterprise, its solvency, the need for additional sources of financing, etc. depend on the speed of turnover of financial flows. Thus, optimization of cash flow should be aimed at implementing the circulation of financial resources, their uninterrupted and prompt flow from monetary form to raw materials, finished products , goods and again into monetary form.
In addition to accelerating the financial cycle, optimizing financial flows involves maximizing the inflow of funds and minimizing the outflow (by reducing the volume or slowing down the speed of outflow).
There are three main ways to maximize cash flows received at the end of the logistics cycle of their movement, i.e. as a result of the sale of produced goods and services:
An increase in the difference between revenue from the sale of goods (services) and costs. This can be achieved by cutting costs and/or increasing product prices. This method must be used with caution, since reducing costs can lead to a decrease in the quality of goods (services) to an uncompetitive level, and increasing prices can lead to a reduction in the amount of goods sold and a decrease in the speed of cash flow.
Acceleration of cash flow. The faster finished products are produced from purchased raw materials, and the latter are converted into cash receipts as a result of sales, i.e. The faster the logistics cycle is completed, the faster the cash turnover occurs. The acceleration of cash flow, in turn, leads to the fact that more cash can be obtained from the same initial resources in the same time.
For example, in order to sell books worth 100 thousand rubles. per month, the bookstore can choose one of the following options. Purchase all goods at once, ensuring the planned sales volume. To do this, he must immediately spend 70 thousand rubles.
But this option is also possible: the store first buys goods in the same assortment, but in fewer copies, for example, for 35 thousand rubles, and then repeats this purchase again. As a result, the same result (sales worth 100 thousand rubles) can be achieved by using half as much money.
The acceleration of cash flow also occurs due to the acceleration of the sale of goods, so in some cases it is advisable to increase costs (for example, for faster delivery of goods) or reduce prices in order to reduce the duration of the logistics cycle and ultimately make a profit faster.
Eliminate unnecessary costs, loss and damage to goods. When improving the logistics process of an enterprise, it is necessary to constantly ensure that unnecessary operations, links, and structures do not arise that lead to unjustified costs. In addition, due care should be taken to ensure the safety of materials, goods and other property. When solving these problems, as well as those mentioned above, it is necessary to apply the concepts of trade-offs, total costs, and others. For example, free access of buyers to goods can lead to an increase in losses of goods due to theft and increased defects, but, on the other hand, it helps to increase sales and increase turnover.
In general, it should be noted that the costs of funds and other resources do not exist on their own. They always appear when you need to get some result. Based on this, it is advisable to first evaluate not the level of costs, but the relationship between them and the results obtained. Effective cost control requires the use of the total cost principle, otherwise costs can be reduced at a particular stage by simply moving them to another stage of the logistics cycle. For example, the purchase of cheaper raw materials leads to longer and more expensive processing, savings on transportation costs lead to higher costs for increasing inventory, etc.
All costs for the production and sale of goods should be considered integrally - as the amount that the consumer must ultimately pay in order to receive the goods and benefit from them. The buyer is not at all interested in how costs are distributed among the participants in the supply chain (publishers, printers, booksellers); he will buy a book if its price corresponds to his financial capabilities, and also corresponds to his assessment of whether the benefit he acquires in this product deserves the required financial expenditure.
etc.................

Moscow State University of Printing. Financial logistics The place of finance in the logistics system of an enterprise

Contents, functions and principles of financial logistics

Principles of financial flow management