Leveraging Proactive Managed Services For Order To Cash
Procure To Pay Order To Cash
Do you work in the financial sector and are looking to reduce the costs of your procure to pay (P2P) and order to cash (OTC) processes? For executives working in financial departments, managed services is an attractive option that can dramatically reduce administrative costs associated with order to cash management.
This article will explore how proactive managed services can be used to create an efficient order to cash process while keeping costs of procurement and cash flow management low.
What is Managed Services?Managed services is an outsourcing model where external providers handle the day-to-day operations of an organizationsuch as procurements, invoicing, payments, cash management, and record-keeping. This type of service is often used to supplement an organizations internal management and operations team, enabling them to focus on higher value-add activities.
Using Managed Services for Order-to-CashOrganizations that opt for managed services as part of their order to cash process benefit from improved operational efficiency, cost savings, and better risk management.
Rather than relying on an internal team to manage procure-to-pay and order-to-cash activities, companies can outsource these processes to specialized managed service providers. The benefit of using managed service provider is that the provider can facilitate the entire process, start to finish. This allows companies to focus on growing the business, rather than dealing with tedious bureaucratic tasks.
Steps to Implement Managed ServicesThe following steps provide an overview of how to implement managed services as part of an organizations order-to-cash process.
Step 1: Define Goals and ObjectivesTo achieve success with managed services it is important to begin by identifying your goals and objectives. Clearly define what you are hoping to achieve with managed services?such as cost savings, improved efficiency, etc. This process will help to ensure that you select managed services provider who can best meet your needs.
Step 2: Select Your Managed Services ProviderOnce your goals and objectives are established, it is time to select managed services provider. Choose provider that has experience with order-to-cash processes and can provide the services you need at an affordable cost.
Step 3: Implement the ServiceBefore rolling out managed services, create detailed roles and responsibilities and communicate them to the team. Establish timeline goals and parameters and ensure that everyone understands their role.
Step 4: Monitor ProgressOnce the managed services are in place, you will need to monitor progress and ensure that all activities are on track. key metric to measure is the time it takes for the process to be completed?track the time it took for the order to be entered, processed, and the payment to be received.
Step 5: Evaluate PerformanceOnce the process is up and running, it is time to evaluate the performance of the managed services. Measure the key performance metrics and compare the results to your pre-implemented goals.
ConclusionUsing proactive managed services as part of an organizations order-to-cash process can significantly reduce administrative costs, improve operational efficiency, and streamline cash flow management. By following the steps outlined above, executives in financial departments can ensure that the process is implemented successfully and efficiently.
