Excellence in Order-to-Cash processes extends beyond simplification and efficiency improvements to actual digitalization.
Digitalization Reinventing Business
A Gartner Study pre-pandemic showed almost 90% of senior business leaders stated digitalization was a company priority.
Further findings:
- Organizations operating with legacy infrastructure and analog processes will struggle to meet the expectations of customers who have been forced to go digital.
- It’s no longer sufficient to execute digital transformation at the speed of business. You need digital acceleration.
- Digital business investment expects to enhance customer engagement and value.
You will find numerous job listings and ads for digital transformation online. You must speed your company’s transition for it to be competitive and for your customers to receive the rewards.
Order-to-Cash Integration
Consider integration across OTC functions rather than just one function. Every function should not have its own tool. The importance of data and transparency in a system cannot be overstated. Relying on phone calls, emails, and meetings is no longer desirable or necessary.
Wouldn’t it be great to know who has the ball and who is accountable instantly? Do you want your associates to spend their time on more strategic duties rather than those that can be automated? Your customers will be happier with fewer touch points from multiple functions.
After our client integrated OTC processes, dispute resolution time decreased from 60+ days to less than a week. A large number of small balances add up on the general ledger.
Understanding how to use credit limits will ensure a smooth order process and enhance sales. Only high-risk customers should have their orders held and resolved as soon as possible. This category should make up a small portion of your portfolio, no more than 10%.
With the right tools, collection productivity increases by a factor of five. Thirty percent of the administration has been removed. That equates to one-third of your analysts’ time. Analysts can transmit duplicate bills on the fly, and dunning letters can be automated.
With today’s technology, 85-90 percent of Cash app transactions should be matched and cleared automatically. Our client reduced the number of associates in each region from seven to four to handle exceptions such as discounts, disputes, pricing adjustments, and so on. Price and volume are often the sources of the most conflicts.
Order-to-cash can be a seamless process. Have you ever had an analyst call a customer about a past-due invoice only to discover that the cash is sitting on the account unapplied? These situations are not beneficial to the customer or sales.
Sirius Solutions Order to Cash Service Offerings
We engage in projects that simultaneously increase cash flow and decrease expenses. In addition to assisting our clients with software selection, business preparedness, and implementation/integration, we have been in the trenches of risk management with some of the most illustrious companies (contact us for a list of clients). We have acquired extensive expertise in crisis management, operational enhancements, and technological solutions.
Sirius Solutions is a professional services firm focused on improving the operational and financial performance of its clients. Founded in Houston in 1998, we have clients in 30+ industries and in 45+ countries around the world, and our leaders average 20 years of real-world subject matter expertise.
We ensure that our clients gain a significant return on their investment with us. See a list of a few of our service offerings below:
- Accelerate Cash Flow from Commercial thru Field Operations from Invoicing to Collections
- Improving Collection Productivity
- Improving Timing and Accuracy of Cash Application and Posting
- Acquisition Integration – Day 1 Readiness Treasury / Accounting / Credit / Cash Flow Functions
- Reduction in Bad Debt & Invoice Deductions
- Reducing Cost of Capital and Fees
- Reducing DSO
- Reducing Costs of Invoicing
- Software Selections Costs Benefit Analysis / Economic Impact / Module & Functionality Evaluation
- Business Readiness – Workflow Re-design or Enhancement / Foundation Data Models to capture AI Value
- Software Implementation & Integrations with CRM, ERP, Billing, Credit, Banking Systems
- User Adoption & Effectiveness
Sirius Solutions can quickly and easily assist your organization with any type of financial digital transformation you may require.
