Cash is King, but Data is Queen – and She’s the Most Powerful Piece on the Board

BY: DAVE NELSON

The adage “Cash is King” remains one of the most important principles in business—especially in manufacturing. Cash keeps the doors open, machines running, and employees paid. But in today’s fast-moving, data-driven economy, there’s a new contender for the crown: Data is Queen. And just like on a chessboard, the Queen is the most powerful piece. She sees the whole field and enables smarter, faster, and more strategic moves.

In a time of ongoing supply chain shifts, unpredictable customer demand, and tightening margins, manufacturers can no longer rely on relationships or routines alone. To remain competitive and solvent, they must align cash management and data-driven decision-making.

Suppliers: Don’t Assume—Analyze and Ask

Cash flow risks often originate deep in the supply chain. If you can’t complete an order due to delayed materials or partial shipments, you’re sitting on inventory you can’t monetize.

• Do you know your supplier’s current capacity, lead times, and operational challenges? Many manufacturers are still adapting to global disruptions or labor shortages. What was once reliable may now be a weak link.
• Are you monitoring supplier performance and risk data? Use data—not just gut feelings—to evaluate on-time delivery rates, fill rates, and communication responsiveness. Data gives you foresight.
• Do you have back-up suppliers identified and qualified? Don't wait for an emergency. Proactive outreach and small test orders now can be invaluable later.
• Have you negotiated flexible order sizes or terms? Smaller or more frequent shipments may increase per-unit costs, but they preserve cash and reduce exposure.
• Are your suppliers being transparent about disruptions, health protocols, or potential shutdowns? COVID taught us the importance of upstream visibility. That lesson still applies to geopolitical or environmental disruptions.

Customers: Use Data to Predict and Protect

Your accounts receivable are someone else’s accounts payable. Cash tied up in unpaid invoices is cash you can’t use to grow or stabilize operations. Data helps you separate solid bets from risky gambling.

• Are you tracking customer payment patterns and aging reports more frequently? Don’t just look at monthly averages—monitor trends. A 45-day payer slipping to 60+ may indicate stress.
• Have you double-checked order needs and timing? Just-in-case production wastes resources. Confirm demand in real-time, not based on assumptions from three weeks ago.
• Are you having actual conversations—not just emails—with key customers? Talk with them. Ask how business is going. Their tone, hesitations, and context often tell you more than words on a screen.
• Are you screening new customers carefully? Not every new order is worth the risk. Use credit checks, references, and financial data to avoid being left with unpaid invoices and unsold product.

Cash + Data = Strategic Agility

Smart manufacturers don’t just manage cash—they protect and grow it. They don’t just collect data—they use it to act faster, negotiate smarter, and plan better. In this economy, the winners will be those who:

• Maintain strong cash positions;
• Leverage internal and external data to make fast, informed decisions;
• And treat every supplier and customer relationship as part of a strategic chess game.

Cash may be King—but in the game of modern manufacturing, Data is Queen—and she holds the power to protect your crown.

MMTC can help you make the most of the data you collect across your operations to enhance quality, boost efficiency, and increase customer satisfaction. We’re committed to finding solutions tailored to your unique business needs. Contact your Business Solutions Manager today to learn about our custom consulting and training services.

ABOUT THE AUTHOR: Dave Nelson, Sr. Business Solutions Manager

Dave Nelson is a Senior Business Solutions Manager with the Michigan Manufacturing Technology Center. Joining MMTC in 2013, Dave works directly with manufacturers in Wayne and Monroe counties. He is a seasoned professional with expertise at identifying/opening new market opportunities and increasing market penetration in existing markets. Dave also has extensive experience in generating/growing new business and selling intangible services.

Since 1991, the Michigan Manufacturing Technology Center has assisted Michigan’s small and medium-sized businesses to successfully compete and grow. Through personalized services designed to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at www.the-center.org