Optimizing Cash Flows With An Order To Cash Solution
Otc Process Improvement Tool
Leveraging the right Order to Cash (OTC) solution can be pivotal for any business looking to maximize cash flows. An OTC solution can enable companies to stay on top of accounts receivable and maximize collections and cash flow. OTC also plays an important role in terms of shaping relationships with suppliers and customers, which contributes to long term customer loyalty.
For financial executives, OTC solutions represent an opportunity to ensure efficiency and accuracy of the accounts receivable process, as well as optimize key elements such as the variance between the invoice date and the date payment is received. Implementing and optimizing suitable OTC process is key to increase organizational efficiency and customersatisfaction.
The aim of this guide is to provide useful insights on how to use solution for OTC process improvement. We will review the benefits of OTC automation, tips on how to achieve successful implementation and illustrate the key processes to consider when evaluating your current OTC process.
Benefits of Automation
The most fundamental benefit of OTC automation is the potential to significantly reduce payment delays. Automation can make it easier to reconcile invoices and payments, which reduces the opportunity for errors while helping to streamline the process. Automation can also free up resources, as manual tasks can be reallocated elsewhere within the organization. Automation can further improve efficiency as customer data is stored and updated on database, and communication to customers can be automated and personalized.
Tips for Implementing an OTC Solution
To ensure successful implementation, it is important to develop clear plan that outlines the objectives for automation, and the desired outcome. Thus, it is important to consider the various processes and procedures that need to be automated, as well as the technology resources required. The implementation should also consider which employeewill be using the technology, and if appropriate training needs to be provided. It is also important to consider the scalability of the solution, in order to ensure that the system is robust and can accommodate growth of the organization. Lastly, automation of the system should only occur after complete data cleanup is done and the team is comfortable that the system is appropriately sized.
Processes to Consider
Consideration should be given to the broader process when evaluating the right OTC solution. This includes processes such as credit management, collections, customer onboarding, dispute management, billing, invoicing and payment processing. For each of these processes it is important to evaluate the challenges that arise and identify how an OTC solution can help. It is also important to consider how the core processes relate to each other, and ensure that transactions are traceable and accountable.
In addition, consideration should be given to how the system will integrate with other existing systems such as accounting, tax or enterprise resource planning (ERP) systems. The integration capabilities of the OTC system should be reviewed to ensure the data is synchronized across multiple systems, and the security of the system should also be discussed.
Once suitable OTC solution is chosen, implementation should take place in systematic manner. As part of implementation, review of the companies business processes should be conducted to ensure OTC process improvement is achieved. This review should include understanding the current best practices, identifying areas of improvement and rating the impact of automation. After the review is complete, the right technology should be selected and integrated with existing systems. Then, the system needs to be configured, tested and launched.
Summary
An effective OTC process is essential to any business, and leveraging suitable OTC solution can enable companies to optimize the process. Automation of the OTC process has numerous benefits and can significantly reduce payment delays. Companies have to consider the larger process, and evaluate the challenges associated with each process when selecting suitable OTC solution. For implementation, clear plan should be drafted with objectives for automation and desired outcomes. systematic implementation process should be followed to ensure OTC process improvement is achieved.
