Modernizing Working Capital With An Order To Cash Solution

Working Capital Improvements

Optimizing the process of bill payment and order to cash is critical aspect of working capital management and cash flow optimization for business. Companies often struggle with inadequate investment in Order to Cash (O2C) solutions that can automate and update working capital capabilities. It is important for executives to understand the path to successful O2C solution, the benefits that can be gained, and the key best practices for their organization.


Working capital is defined as the operating money that exists to maintain day-to-day business operations. Companies often look to reduce their working capital in order to maximize their cash flow and create space for reinvestment. Automation of the order to cash process holds the key to working capital improvement and is an area in which firms spend significant time and resources. Through the implementation of an Order to Cash solution, executives have the potential to reduce operational costs, improve operational controls, and increase productivity. This article outlines the step-by-step, comprehensive approaches to using modern O2C solution to improve working capital optimization and cash flow.

Step ? Review Current Process and Gather Business Requirements

It is important for your company to review its current Order to Cash process in order to determine the areas to target for improvement. This review should focus on improving efficiency, accuracy, and overall financial performance. In addition, the organizationshould be aware of specific business requirements and functional requirements for an Order to Cash solution that meets these needs. The requirements should identify the overall process for the order lifecycle, from order receipt to payment delivery.

Step ? Engage Cross-Functional Perspectives

In order to ensure support from the entire organization, it is advantageous to engage cross-functional perspectives from variety of departments and internal stakeholders. These cross-functional teams should have representation from departments such as finance, accounting, billing and accounts receivable. This connection of multiple perspectives is important to identify and meet organizational needs and create streamlined process to maximize the benefit of the O2C solution.

Step ? Evaluate Product or Service Offerings

The executive should determine the best option for an Order to Cash solution. The major options include an enterprise resource planning (ERP) system, combination service solutions, and stand-alone solutions. When making the choice of which option is best for your organization, ensure that the product or service covers all the business requirements and functional requirements. Analyze the system by asking detailing questions: what do you need? and which solution fits best?.

Step ? Develop Plan for Implementation

Once the product or service option is selected, create timeline for implementation and connect this to the overall businesstrategy. This plan should include essential tasks such as assessing the current Order to Cash process, mapping the Order to Cash process to the new system, software implementation, end-user training, and system testing. If you are outsourcing all or parts of the implementation, ensure that the provider has experience and credibility in this type of technology implementation.

Step ? Establish Performance Metrics

Provide performance metrics from the implementers, including targets relating to speed of processes, accuracy, cost of delivery, and customersatisfaction. Developing metrics for the solution should focus on the financial and operational value, delivery of billed orders and payments, and the speed of order processing and payment. Operational metrics that focus on tracking customer orders from invoice generation to payment can provide executives with crucial insight into the financials of their organization.

Step ? Integrate Automation

It is beneficial to integrate other automation solutions into the Order to Cash process. Automated solutions can improve the speed and accuracy of the delivery, allowing companies to capture invoices and make payments faster. Automation is essential for the seamless implementation of an Order to Cash process and provides the ability to detect inefficiencies and compliance issues. Automation of the system can also reduce manual processes, allowing time to be devoted to operational improvement and customerservice.


An Order to Cash solution is crucial part of working capital management and cash flow optimization. The steps involved in implementing modern Order to Cash platform solve the issues associated with inefficient processes and inadequate investments in an automated system. Executives can use this guide to develop an O2C strategy that is tailored to their organizations specific needs and objectives. With the process outlined in this article, executives can improve the working capital of their organization, reduce operational costs and increase efficiency.