The Order to Cash Process refers to the business and financial exchanges between suppliers and customers during the purchase of a product or service. The O2C Process begins when an order is placed and is concluded when payment is received. However, a number of steps can unfold between inception and conclusion of the Order to Cash Process.
Staff members related to contracting, credit, AP, AR, risk management and other departments must be kept on the same page for an efficient, effective O2C Process. With so many variables, automation of the Order to Cash Process is essential and can boost business performance exponentially.
Top 8 Benefits of O2C Process Automation
The following are eight of the top benefits of automating your Order 2 Cash Process:
1. Reduced Order Submission Delays
Orders taken using a paper driven system may have to be generated numerous times before a customer signature is obtained. This is both inefficient and prone to error. Paper orders are far more likely to be delayed than orders filed through an electronic system.
2. Increased Business Productivity
Every step in the business day that can be automated makes productivity better across the boards. The Order to Cash Process is essential to every business, and it should be one of the first areas to be considered for automation.
3. Faster Payment and Improved Cash Flow
Automated invoice processing expedites the entire Order to Cash Process and allows businesses to get paid faster. The electronic process is much more rapid and far more accurate, and this translates into a more rapid flow of funds into the business coffers.
4. Improved Customer Service
A higher degree of accuracy and efficiency in order submission and the entire Order to Cash Process allows companies to deliver a higher level of service across the boards. Both customers and enterprises benefit, making it a win-win.
5. Tap Into Business Metrics for Better Performance
With an automated system, it’s easier to tap into key data like risk ratings to quickly determine whether certain buyers are good candidates for developing a relationship and/or extending credit. Data can be obtained in real time, allowing your businesses access to key tools and information to optimize decision making.
6. Increased Flexibility and Mobility
Electronic order taking allows for instant order submission on the go. Orders can be entered as easily on a laptop, tablet or other device as with a desktop computer. Some systems can be used with a bar-code reader or integrated catalog.
7. Accuracy in Inventory Monitoring and Estimated Delivery Times
Automated electronic order software can interface directly with each rep’s ERP, allowing them to confirm inventory availability before an order is placed. They can also better estimate and confirm delivery dates. Orders can be transmitted immediately and fulfillment can begin the same day. Customers receive automated order confirmation and shipping notices electronically.
8. Better Overall Revenues Year After Year
Increased efficiency in O2C Processes with targeted operational improvement programs contributes to an overall momentum toward increased profits and business revenues. Once the automated Order to Cash Process is in place, all other business processes will flow more smoothly. The results for business functioning as well as annual revenues can be exponential.
In today’s business climate, speed and accuracy are key. A delay can move receipts into the next month or quarter, affecting sales rep performance and business cash flow. Old paper driven systems just can’t perform the way that modern businesses require in order to compete and succeed.
Automating the Order to Cash Process can make all the difference in terms of competitive advantage and going to the next level. Amalto is a trusted leader in developing Order to Cash solutions for a range of enterprises. We can assist with the automation of quote requests, field tickets, and invoices to optimize your entire Order to Cash cycle. Contact us to get started in making the move.