Companies in tune with customer satisfaction know that meeting deadlines for deliveries and optimizing time on the production line are fundamental to achieving success. Within this reality, the Order to Cash (OTC) process is a practice that must always be followed to the letter.
In order for you to always maintain excellence in the relationship with customers and suppliers, we have prepared this post to show five benefits of OTC in corporations. But first, let’s understand better what this term is so common in the logistics environment! Check it out!
Understand what the Order to Cash process is
The Order to Cash process is the cycle that goes from ordering a purchase to delivery to the customer. It is a practice very similar to the Supply Chain, that is, there are several attitudes that help in the supply chain.
In this way, the manager is able to visualize all the phases of a financial transaction: from credit analysis, through stock picking, until the time the goods reach the consumer’s hands. Moreover, with the possibility of effecting an after-sale with an eye on loyalty.
Everything is the result of being in tune with technology through management software that makes it possible to monitor the flow in real time in an optimized manner, that is, the increase in productivity is very feasible.
Now that you are already in the OTC process, let’s list the five benefits it brings to companies..
1. Compliance with deadlines
We all know how dissatisfied customers are when they wait too long for a product. However, when deploying a software or ERP, there will be more agility in the fulfillment of processes, making the goods arrive even before the deadline at the consumer’s home due to the good management of orders.
Thus, the level of satisfaction with your business will increase. As a result, the chances of the same person buying again will increase considerably.
2. Increase in sales
The organization in the workflow, in the inventory and in the methodology of the employees leads to a good relationship with the customers and, consequently, loyalty.
Thus, the Order to Cash process influences the increase in business and sales, in addition to improving the image of your company.
3. Agility in cash flow
Commercial automation streamlines payment and receipt orders, optimizing cash flow. In this way, your business can create strategies due to the reduction in the error or loss rate.
It is possible to make plans, which can be more precise, such as a possible investment in the short, medium or long term.
4. More accurate inventory monitoring
The Order to Cash process also contributes immensely to effective inventory monitoring, preventing losses or breakages.
With this, you can always make purchases within the sales expectation, taking advantage of the seasonality periods and gaining more competitiveness. Furthermore, by always finding what they are looking for, the customer will be more satisfied!
5. Metrics as business allies
The data provided by the operating system will enable some analysis of the best suppliers, assisting in granting lending. In addition, this advantage has a clear relationship with the application of new strategies, the development of lasting partnerships and risk ratings.
As you can see, the Order to Cash process is fundamental to the business reality, whether in industry or commerce. Therefore, invest in automation and expand the possibilities of growth of your business!
Did you like the text? Since the subject is OTC, you should know the challenges of this process and understand how it works with more details!
About The Blog
The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.