A longer voyage can reduce freight costs while increasing the money committed to goods in transit. Rajeev Khandelwal’s cross-border advisory background offers context for that tradeoff. Logistics and finance are often evaluated separately, yet both affect the delivered margin. The best commercial route depends on the total cash cycle, including supplier terms, transit uncertainty and the date on which the customer becomes obliged to pay.

Measure the transit balance

Goods can remain economically committed to the business for weeks before they become available for sale. The company may have already paid deposits or the full supplier invoice. That period consumes financing capacity even though the stock has not reached the warehouse. A cash forecast should identify when responsibility and payment obligations arise, rather than begin its inventory calculation only when the shipment physically arrives.

Compare total delivery economics

A cheaper shipping option may require additional buffer stock or create a greater risk of missing customer deadlines. A faster route may reduce financing needs but cost more directly. The decision should compare both effects. This is particularly useful for valuable or perishable goods, where time can influence quality, saleability and the amount of working capital needed to maintain dependable customer service throughout the year.

Prepare for disruption

Port congestion, inspection delays and missed connections can extend the cash cycle beyond the planned transit period. The business should understand which obligations continue during those delays and whether insurance addresses the relevant losses. A financing buffer cannot solve every logistics problem, but it can prevent a temporary shipment interruption from immediately disrupting payroll, supplier relationships or the ability to place the next commercial order.

Connect the desks

Credit Connect’s trade-finance offering and Rajeev’s international transaction context point toward a practical management habit: logistics decisions belong in the cash forecast. Procurement, shipping and finance teams should share the same timeline. A route that looks efficient in a freight quotation may be less attractive after funding costs and service risks are included. Seeing the complete cycle makes the commercial choice more informed and operationally resilient.

References
  1. Rajeev Khandelwal — professional profile ↗
  2. Al Furqan Credit Connect — advisory disciplines ↗