Cash Optimization Risk Of Not Having Software
Cash Optimization
Organizations with long order-to-cash process know the value of cash optimization. It reduces process redundancies and delays, accelerates invoice payment approval times, and improves cash flow. Without software to automate manual processes, companies are at risk of missing out on these benefits.
Cash optimization begins with order management, which sets the stage for the rest of the order-to-cash process. It requires ensuring customer information accuracy and verifying order data. When manual processes are used, it can be unclear which processes were followed and whether they were completed correctly. As orders move through the process, costs can accumulate without being attributed to customer or product.
With manual processes, customer onboarding and approval for credit limit increases can become bottlenecked. This can result in customer dissatisfaction and delayed customer access to cash. Automated order management sets preset rules and approval protocols, resulting in reduced approval time and increased customersatisfaction. This also eliminates the need for lengthy negotiations.
Manual processes can lead to unreliable controls and limits. Companies may struggle to accurately report on customer aging and bad debt. With automated controls, companies are able to set predetermined guidelines and limits that act as protectors against potential errors. This also decreases manual management and involving multiple departments or people.
Manual processes lead to missing out on valuable insights and decision-support data. Business intelligence provides companies data that reveals key performance indicators, uncovers areas of optimization, and reveals risks. Companies missing this data are putting themselves at risk of not having competitive edge.
Finally, manual processes make it difficult to guarantee data accuracy. By automating data entry with business process management, companies can prevent data entry errors and ensure data accuracy, leading to improved relationships with customers and banks.
In summary, companies that do not take advantage of automated software are missing out on improving process efficiency, customersatisfaction, and data accuracy, leading to decreased revenue, customer churn, and hidden costs. Automated order-to-cash software offers companies increased visibility, lower costs, and reliable controls. Companies that recognize this are more equipped to succeed in todays competitive market.
