The Hidden Risk Of Not Automating Order-To-Cash
AUTOMATE ORDER-TO-CASH
Organizations must ensure the successful completion of an order-to-cash (O2C) process in order to remain agile to emerging customer demands, secure current market position, and to achieve incremental growth. Most companies are aware of the necessity of having well-structured O2C process, as this enables scale and segmentation of critical customer functions. However, large swath of business owners overlook the hidden risks of not using software to automate this crucial process.
When an O2C process is solely managed without software you inherently lose the benefit of time-tested best practices, scalability, as well as the elimination of common errors. The lack of automation can strain existing resources while adding to lead time and errors, resulting in higher cost of goods and services sold. Investments in software infrastructure are necessary to meet the demands of the increasing complexity of O2C processes.
Manually managed O2C processes can lead to miscommunication, incorrect data capture, and critical information falling between the cracks. Missing documents and incorrect data can interrupt the deposit of payments, opening the possibility of lower overall cash collection performance and missed opportunity to secure further capitalization. By automating O2C, however, companies can integrate tools that streamline order processing, payment collection, and customer data management, ensuring the secure and vast control of operations.
Manual processes are also strict detriment to inventory management. Without software in place, it can be difficult to identify the level of inventory needed, causing excess investments in products or services that are not being used, or lack of the items necessary which can leave customers without necessary goods or services. Automated O2C software helps to manage inventory, avoiding inventory glut and shortages.
Furthermore, manual processes leave the opportunity for data intrusion or manipulation, as well as financial fraud in dealing with customer information. Automation eliminates manual entry, providing company-wide data compliance and tighter financial control. Manual O2C processes are also limited in their data-capture capabilities, unable to capture data points across the organization. Automation, however, tracks data points across teams and departments, allowing stakeholders to make more informed decisions quickly.
In conclusion, not automating O2C processes can open businesses up to risk and inhibit financial security. Companies must consider system investments that can not only bridge internal data processes, but also provide necessary information to drive strategies and decision making. Automation is no longer an option, but an imperative to yield cost savings and unlock new opportunities.
