The Risks Of Neglecting Order To Cash Automation
AUTOMATING ORDER TO CASH
The business world is ever-changing and rapidly modernizing. Any company who is not adapting their processes to ensure that the most recent advancements in technology are employed may eventually find themselves at competitive disadvantage. With regards to the Order to Cash (OTC) process, this principal has never been more true: automating the OTC process is essential to maintaining smooth transactions, strong customer relationships, and optimized financial value.
When executed manually, the OTC workflow is prone to numerous errors and inefficiencies, ultimately resulting in longer working capital cycle. This is further highlighted when an enterprise must support multiple methods of payment, or the payment request needs to span multiple countries. Without automation, companies may be unable to query customers? payment systems or reach multiple customer banking sit is to search for payment statuses in timely fashion. Additionally, there is substantial risk that payments may be overlooked as result of manual inaccuracy. As result, companies experience delayed cash flow or simply forfeited payments which can result in normalizing of lower customer payment standards, culminating in reduced company profits.
Moreover, manual payment processing burdens the accounting cycle, especially for those enterprises with high volume of customers, as significant delays in cash inflows can lead to greater cost of borrowing due to delayed investments. Last but certainly not least, isolated manual intervention in an OTC process has the potential to be catalyst for non-compliance with both internal and external Payment Card Industry (PCI) requirements; potentially costly mistake.
Fortunately, the integration of software for automating the OTC process obviates the issues associated with manual processing. Many software solutions are designed to help companies manage customer and supplier relationships, automate document handling, and facilitate payments in combination with intuitive search functions that quickly ascertain payment status when queries arise. The automated OTC process also expedit is issue resolution by providing customers with the visibility they need to quickly address any issues that may delay payment.
In addition to improving the OTC process, automated software also reduces costs associated with manual interventions. Automation serves to reduce employee efforts thanks to assisted document handling, simple entry of payments, and creation of reports. Finally, the implementation of automated OTC software removes the possibility of human error and provides companies with the ability to respond swiftly and compliantly.
In conclusion, companies ignoring opportunities for automated OTC solutions open themselves up to the multifaceted drawbacks inherent to manual payment processing. While the unmooring of traditional manual process can prove to be daunting task, the transition to an automated system is very much achievable. Executives must ask themselves whether the purported risks and costs associated with manual processes are worth overlooking the opportunity to make their business more efficient and secure.
