In managing a company’s cash flow, understanding the appropriate cash management strategies is crucial. One important concept is the cash conversion cycle, which measures how long a company takes to convert its inventory and other resources into cash flows from sales. An effective cash management strategy not only ensures that a firm has enough liquidity to meet its obligations but also minimizes the idle cash sitting on its balance sheet.

Consider the following strategies for cash management: 1) Maintaining a larger cash balance for emergencies, 2) Automating receivables through electronic invoicing, and 3) Delaying payments to suppliers as long as possible. Which of these strategies is most effective in optimizing cash flow management?