Maximizing O2C Performance Through Software Solutions
O2C Software
The goal of any financial executive is to maximize efficiency and profitability without sacrificing quality customerservice. While the order-to-cash (O2C) cycle of sales, collection, and cash flow can be complex, taking the time to identify and implement the right Softwaresolution can work to simplify and streamline the process. Doing so can help to significantly enhance operational performance.
Usually part of larger enterprise resource planning system, O2C software enables companies to electronically manage the entire billing, invoicing, and collections process. From an executive perspective, sophistication of the software allows for visibility into revenue management trends, customer accounts and account receivable management; while forecasting revenue, automating collections and helping to reduce days sales outstanding (DSO). It goes without saying that accurately and efficiently tracking collections is essential for fiscal soundness .
The organizational advantages of O2C software are evident in both financial and non-financial areas. It can automate order entry and processing, adhere to consistent pricing models across all sales channels, streamline product and customer data, enable integration and collaboration with customer portals, enable customerself-service features, and automate payment processing. Optimal software can also incorporate up-to-the-minute supply chain information and include re-ordering options.
At glance, modern software packages offer advanced features and variety of customization options. Investing time to carefully evaluate the range of Softwaresolutions available ensures selection of the most suitable, efficient and cost effective platform. Primary considerations should include:
? Automation of collections. An automated accounts receivable process integrates payments and accounts across various systems to simplify the collection process, reducing manual invoicing errors and promoting more efficient follow up process. Automation ensures customers can make payments quickly, while keeping departments informed in real-time.
? Speed and accuracy of order fulfillment. Consideration of software that allows access to customer and product data, integrating with accounting entries and providing stock updates to customers. Softwareshould be able to support the capability to process and confirm orders in multiple currencies with corresponding tax calculations.
? Increase in customersatisfaction. Effectively managing customer experience is key, so look for Softwaresuit is designed to facilitate discounting, multi-level pricing and promotions. Additionally, features such as customer portals enable customers to manage their own accounts, set up payments and track orders in real-time, helping to provide significantly enhanced customersatisfaction.
? Analysis of performance. An insight into where the strategy is working and where it isn?t can be essential for maximizing operational performance and profitability. Software with functionality for tracking metrics, access to invoice aging and payment histories, ability to export data to other systems, and detailed customer order have the power to revolutionize an organizations approach to O2C.
When considering an O2C Softwaresolution, qualitative and quantitative analysis must be applied. Considering the return on investment, fully integrated solution can help to ensure an organization runs at optimal efficiency, achieving maximum performance, greater customersatisfaction and improved profitability.
