The Order to Cash cycle is synonymous with complexity for many companies, but when it performs well, it maximizes its resources and ensures satisfied customers.
And to optimize it even more, automation has been the alternative that companies have been resorting to.
In this article, we will explore this topic by explaining the challenges, advantages and how you can apply Order to Cash process automation in your company.
Enjoy it and read all the content to learn more!
What are the main challenges for Order To Cash automation?
Companies that closely observe the entire customer payment process have already realized that the challenges for automating Order to Cash processes are immense.
The first one is the fact that Order to Cash is usually a cycle that involves several departments, which create their own data and use their own resources.
As a result, the same order generates several documents and workflows, which opens a large gap so that the entire process is not agile and generates errors.
The invoicing activity, which in the traditional way is also manual, can generate delays and extra expenses with the issuance of papers.
Finally, customer information can arrive unstructured from one department to another, which increases the chances of getting inaccurate data.
With automation, the goal is to optimize the entire process, making the completion of each step more assertive, faster, more fluidly and economically.
Why can Order To Cash automation be beneficial to your company?
You may doubt that automation really brings tangible results for organizations, but an IBM study proved that automation improves Order to Cash cycle time by 60% from end to end.
It is a significant number, isn’t it?
Therefore, we will show you that there are many other advantages in automating this process, some of them are:
- Free up time for employees to focus more on customer service;
- Cost savings;
- Fewer human errors;
- More satisfied customers;
- More agility to complete the entire order cycle;
- Improved cash flow by streamlining payments;
- Improvement of communication and dispute with the customer.
Finally, it is worth noting that all these advantages translate into more growth and business opportunities.
How can we apply Order To Cash process automation?
Order to Cash process automation is increasingly intelligent, when using technologies such as process robotics, Artificial Intelligence and analytics, so, all of this prevents companies from depending so much on their suppliers to obtain data and continue the process, and it still has more control at every step, from financial data and cash flow.
OTC automation can take place in the following steps:
- Receipt of orders and automatic notifications to the team most involved in the process;
- Customer credit management;
- Monitoring, approval or denial of the automatic order;
- Receipt of relevant data for sending the order;
- Invoice generation;
- Alerts of outstanding invoices;
- Payment collection;
- Creating and managing reports.
With all this data streamlined and in hand, companies can anticipate problems and minimize situations that negatively impact Order to Cash processes.