Optimising the customer cycle has recently become one of the major strategic challenges for most companies. This process, which involves the automation of ordering and other operations, seems to have significant advantages. What are they and what does Order to Cash consist of? What are its objectives? The article below explains it all for you.
What is it About ?
In simple terms, the order to cash method concerns all the processes relating to the client cycle activities. Discover Sidetrade.com, one of the best structures in this field. Generally known by the acronyms “O2C” or “OTC”, it is the process corresponding to the different treatments of commercial orders. Therefore, Order to Cash concerns, among other things, marketing strategies, the supplier cycle and, of course, the so-called commercial actions.
Moreover, being a well-established process, O2C includes several phases in its development. The first step is the taking of an order by the customer through the use of a communication and ordering channel. Then, this order is properly analysed and processed, particularly in terms of administration, by software. Next, the order must be prepared before being shipped and delivered to the customer’s address. Finally, the invoice is issued and cashed according to pre-established rules.
The Advantages of O2C
The use of software in an order-to-cash process makes it beneficial at various levels. Indeed, all phases related to the order are automated. Thus, digitisation software relieves the company of all the above-mentioned steps that an O2C includes. Thus, freed from all these tedious tasks, it becomes easy for your company to contribute to the reduction of the life cycle of an order. Since the processing of the order as well as its delivery seems to be faster. As a result, the company becomes more efficient and effective.
Furthermore, it is clear that time savings can be made in each of the steps of the Order to Cash process. In this way, the organisation is optimised and the steps are accelerated. Because the company’s employees no longer have to do certain tasks. As a result, they take over the high-value tasks.
Another advantage of this process is the reduction in operating costs, as the company no longer spends on certain low-value services. Operational costs are reduced considerably.
It also helps to reduce possible risks that could damage the company financially or in terms of reputation. This is because mistakes can be made manually when entering customer data, purchase orders and invoices. With the OTC software, all these services are solved automatically and without any errors. So you don’t have to waste your time trying to fix an error. Errors and defects in payment are also reduced.
What are The Challenges of O2C ?
Based on the digitalisation and optimisation of various ordering actions, the Order to Cash operational activity seeks to address three main issues. These are clearly visible through their benefits. Indeed, the first issue is that of costs. The process wants to save you time and therefore more money. The second issue is the delivery time of the order to the customer. Especially since the customer cycle is greatly reduced.
The third and final issue is to improve the quality of your services. This is the most important objective. This consists of avoiding any problems of dispute with your customers and retaining as many of them as possible.
In short, Order to Cash is very beneficial to an organisation and to the customers who place orders. Nevertheless, it is necessary to choose the company to which to entrust an order according to certain criteria.