LEVERAGING THE POWER OF AN ENTERPRISE GRADE O2C PLATFORM

In the ongoing COVID-19 pandemic, organizations the world over realized that to generate liquidity and conserve cash for business continuity, risks needed to be minimized and returns from the Order-to-Cash (O2C) process be maximized. Revenue optimization and O2C transformation being the critical landmarks in this volatile and dynamic environment.

In today’s unpredictable and challenging times, it is vital for businesses to optimize their O2C processes in order to maintain seamless and productive operations. Modernizing and integrating an organization’s O2C process can progressively improve its business growth, while stabilizing revenue over the long term. Efficient O2C processes help eliminate risk and enable business leaders to shift focus to shortening their invoicing process and improving the on-time payment rate.

According to recent studies, organizations not automating their O2C processes are more likely to make data entry errors, forgo productivity, and encounter higher operational costs. On the other hand, those organizations that are undergoing finance transformation are benefiting from increased sales, higher margins, and higher customer satisfaction.

The Need for Accelerating Order-to-Cash Automation

Automating and streamlining finance processes can have a dramatic impact on efficiency and the company’s bottom line. In fact, a recent IBM study, shows that the adoption of best practices improves median order-to-cash performance by as much as 83 percent in efficiency through FTE head count reductions and associated higher transaction volumes processed per FTE, as well as up to 60 percent in key cycle time improvements. Not only that, optimizing performance of the revenue cycle helps organizations expedite their cash flows and increase available working capital. For most organizations, a major challenge in the area of Account Receivables is on-time payments within a specified time period and maintaining a customer-friendly process. In addition, the order to cash process is often challenged by inefficient and siloed operations causing customer and order information to remain fragmented across multiple systems. Higher Day’s Sales Outstanding (DSO) and increased write-offs are also an inevitable challenge faced due to an inefficient O2C process. According to recent research, most organizations also reported snags like processing of incorrect or delayed orders, erroneous manual invoicing, relationship damaging customer disputes, and costly operations.

With the world constantly changing in response to the current environment, organizations need to prepare for the changes that modernizing processes and digital transformation demands. Some of these trends driving the O2C space are discussed below.

Some order-to-cash trends on the rise:

  • Process based solutions

Traditionally the O2C process was focused on a few basic functions such as, credit and collection processes, and cash applications etc. In response to market trends, there has been an emergence of an integrated receivables solution across the entire O2C system. These integrated solutions lend a significantly higher rate of efficiency to transactions and dispute resolution at all stages of the O2C process. It not only helps to save costs and eliminate inefficiencies, but also improves customer relations.

  • Focus on customer-oriented solutions

Organizations are investing in strategies to improve customer retention and average customer lifetime value. In order to do the same, businesses are deploying technologies and processes to modernize O2C capabilities and provide solutions that cater to usage-based transactions and changing consumer demands.

  • A shift to integrated solutions

There is a huge shift from customized solutions to integrated solutions by service providers offering integrated tools and methods leading to lower implementation and maintenance costs.

  • Cash-flow emerging as a priority

With O2C automation now seen as critical for business environments and eco-systems, net cash-flow has emerged as a priority for business leaders. The increased capabilities of an integrated O2C process helps increase the cash-flow benefits significantly.

When organizations explore the value of leveraging data and technology to deploy a better integrated O2C process, it adds immense value beyond just profit and loss. It streamlines and adds value to the entire supply chain, ultimately impacting the bottom line by reducing errors and redundancies, and by enhancing customer relationships and ROI. Thus, in today’s dynamic, uncertain and slowly recuperating world, optimization is the redeemer.

While, embarking on a financial and digital transformation journey is essential for any business looking to grow and stay ahead of the competition, it is imperative for business leaders to partner with the right monetization platform.

By adopting a platform like RecVue, during a digital transformation initiative, it can be a game-changer in terms of leveraging technology and automation to deliver performance optimization as well as time and cost savings. RecVue’s unified platform integrates with any ERP, CRM and front-end order processing systems, enabling customers to improve efficiencies across order-to-cash, revenue and general accounting, while gaining real-time access to data. Finance groups are able to increase accuracy and timeliness of billing and invoicing and aggregate billing information in a single system to improve analysis and forecasting. RecVue’s monetization platform includes a 360-degree view into the entire contract lifecycle, rules-based attribute pricing, complete order-to-invoice capabilities, pay-side management for third party obligations, and robust analytics and reporting. When the new revenue models associated with digital transformation take shape, they bring an exponentially greater level of complexity.

Reach out to us today for an O2C and revenue management assessment. Learn how RecVue can empower your organization to deliver on digital transformation initiatives to support future growth.

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