Maximizing Cash Flow: The Risk Of Not Using Collections & Dispute Management Software
Collections Dispute Management Software
Order to cash (OTC) processes are crucial part operation for any business, not just in terms of customerservice but for cash flow as well. it is crucial that all of the processes that comprise OTC, including collections and dispute management, are carried out efficiently, accurately, and cost-effectively. Unfortunately, this is not the case where manual processes are involved. Manual management of collections and dispute resolution is resource-intensive, error-prone, and slow, resulting in immense losses and customer dissatisfaction.
For C-suite executive overseeing finance, the costs in time, resources, and money lost as result of manual process management must be understood. With collection or dispute mistakes, customer classes may have to be restyled and customer orders waiting on payment can impede the order to cash process and hold up hundreds of invoices. Delays mean customer frustration and data entry errors result in payments and customer disputes needing to be resolved more often than necessary.
Not having the right collections and dispute management software can also lead to compliance issues. Regulatory demands and industry standards must be met with respect to customer data and processes, and any manual process increases the risk of failure in this regard. Moreover, process automation and unified customer documents across the organization become impossible with manual methods. This can have dramatic impact on customer and supplier relationships, resulting in widespread distractions and financial detriment.
Overall, finance executive must evaluate carefully the risks of not using collections and dispute management software as part of their OTC operations. Manual processes cost more in the long term and, by relying too much on superfluous manual labor, may create an unsustainable debt-to-cash cycle. Moreover, it can spawn compliance issues and customer dissatisfaction, both of which can harm an organizations short-term and long-term financial health. On the flipside, the right Softwaresolution will offer the tools and the data needed to drive operation efficiencies and customersatisfaction, thereby obtaining competitive advantage in the market for OTC operations.
