Unifying The Procurement And Payment Process To Optimise Your Order To Cash Cycle
PROCUREMENT P2P
With the increased pressure to maintain profitability, free up working capital, and optimise performance, modern organisations are always in search of more innovative solutions to make the most out of their available resources. One of the best ways to do this is by unifying an organisation’s procurement and payment process, commonly known as “Procure to Pay” (P2P).
However, when organisations attempt to automate the P2P process to increase efficiencies, they often struggle to do this. To help organisations dig deeper and gain an accurate view of the performance of their procedures, an Order to Cash (OTC) solution is the way to go.
An OTC solution is used to combine both purchase-to-pay automation and sales order resolution processes into one system, helping to streamline the entire sales cycle from start to finish. With an OTC solution, organisations are able to manage contracts, orders, invoices and payments from single platform, making it possible to improve the visibility of all operation-critical processes.
Step-by-Step Guide for an Order to Cash Solution
Step 1: Select an Appropriate OTC Solution
The first step in getting an OTC solution is to select suitable system. For the best performance, make sure you do your research, evaluate the system?s background, and insist on in-house testing before taking the plunge.
Step 2: Streamline Business Processes
Before you integrate the OTC solution, review your purchasing and payment process to identify areas of improvement, especially where manual processes are involved. Use findings to adjust the operations and eliminate manual steps as much as possible.
Step 3: Implement the OTC Solution
Once the business processes have been streamlined, arrange for the implementation of the OTC software. Consult the vendor for any available resources, or use the system?s help documents for guidance. Most vendors provide implementation services to ensure everything is set up properly.
Step 4: Train Employees
To make sure the new system runs efficiently, employees must be trained on the use of the software. Take the time to ensure that each team assures broader understanding and implementation of the OTC solution.
Step 5: Monitor System Performance
Once employees are up to speed, monitor the system performance from time to time to ensure that you have the latest insights into your organisation?s sales process. Make sure to also review reports regarding errors and compliance issues.
Conclusion
Combining the procurement and payments process into one streamlined system helps improve decision making at every step of the sales process. An OTC solution provides an organisation with greater visibility and control over contracts, orders, invoices and payments. Even the C-Suite is able to get the complete picture on the performance of their organisation’s business processes. Implementing an OTC solution is not only cost effective, but also essential for an organisation looking to remain competitive in their industry.
