Written by Dominic Acito.
Optimizing the order-to-cash process can be worth the effort. By optimizing this process, you can save money, keep your customers happy, and get quicker access to the money you are owed. In this post, we look at a few ways you can optimize the order-to-cash process.
What is Order-To-Cash?
For those who don’t know, “Order-to-cash” (O2C or OTC) refers to the business process for receiving and processing customer sales. This process includes such sub-processes such as the customer order, order fulfillment, invoicing, and customer payment. Also, any other miscellaneous thing that may come up between the order and the customer payment can be considered part of this process.
How to Improve the Process
When you look at optimizing any process, the best way to do so is to either cut out steps or to make the individual steps more efficient. The first thing you should think about is whether or not your company can completely cut out any steps in your particular order-to-cash process. Obviously, you can’t cut out certain steps like order fulfillment or invoicing, but maybe your process has a step that just isn’t necessary.
Using Order-To-Cash Software to Speed Up the Process
Next, after analyzing the overall process, you can take a look at making the individual steps more efficient. One such way to do so is to use software to manage your order-to-cash process. This can benefit your company in many ways. First, by using an automated solution, your invoicing process will become much more efficient. Your finance department won’t need to spend as much time manually creating and filling out invoices. If you have any type of recurring invoices, this automated invoicing system can really save some time here as well.
Another big benefit is that order-to-cash software also allows for better communication, via email, with your customers. If you are currently using regular mail, then this can really speed up your process. By using email, you will save on paper and postage, get order details to your customers immediately, and get invoices to your customers faster.
Order-to-cash automation can also speed up your companies order fulfillment process. By using software, your order fulfillment team will know immediately when a new order comes in. This will allow them to process orders right when they come in and will also allow them to better organize their time when they get backed up.
In the short term, switching from a manual order-to-cash process to an automated process may seem like a big deal. However, in the long run, this switch can really add up to major cost savings and an increased customer service experience for your valued clients.
Author Bio: Dominic Acito is the founder and editor of domstechblog.com. He brings a background as a software engineer and as a high level super user to the Blogging world.