Effectiveness: The Risk Of Relying On Manual Processes In Order To Cash
Dso Best Practice
Running business requires many processes to keep operations running smoothly. These processes are incredibly important, and being able to manage them correctly can positively impact the bottom line of an organization. One of the most important processes business may manage is the order to cash (OTC) process. In simpler terms, the OTC process is the idea of ordering product, shipping it, billing it, and receiving payment.
Managing the OTC process manually, however, can incur significant risks that can keep an organization from meeting the standard levels of modern business efficiency. For any order to cash processes related to invoicing, payments, and order tracking, it is essential that organizations look to use specific order to cash software.
For finance executives looking for ways to ensure their organizations remain competitive and run operations effectively, implementing an order to cash Softwareshould be priority. Such solutions offer many benefits and can eliminate several risks. Primarily, not utilizing OTC software can lead to mismanaging the cash flow process and invoice payments, leading to potential customer churn due to delayed payment delivery and customer implications from inaccurate tracking of orders, payment, and refunds. Additionally, manual OTC processes are tedious and inefficient, leading to slow workflow and significant, unintentional delays which can cause significant problem.
The risks can be even larger in cash-sensitive industries, such as healthcare, automotive, and FMCG. These sectors require minimal mistakes as mistake can be costly, financially and in terms of customer experience. Automating the OTC process gives companies an additional edge to reduce errors and ensure business productivity and reputational protection.
With automated OTC solutions, organizations can reduce customer turnover due to customer dissatisfaction, control customer accounts with accurate, timely information, and locate proven payment collection strategies as well as invoicing systems. In addition, companies can reduce their backend costs and streamline the process. By implementing an automated solution, companies can also improve their customers experience, providing them with more options, improved tracking systems, and 24-hour ordering capabilities, making the process easier and faster.
Ultimately, going with an automated and integrated order to cash software platform is the right action for many organizations. While the upfront cost of this type of solution can be significant, the payoff in terms of improved customer experience, streamlined process, and risk reduction can be well worth it. For finance executives concerned with risk management, not utilizing automated OTC software can be significant threat and should be addressed as soon as possible.
