Order to Cash (O2C)

Contents :

1. The definition of Order to Cash:
2. The Order to Cash process:
3. Order to Cash optimization:

The definition of Order to Cash:

L’Order to Cash (O2C in French or OTC in English) is a process that covers the entire customer cyclefrom product or service order to invoice collection.

The aim ofOrder to Cash is to optimize :

• The sales process,
• Maximize revenues,
• Reduce potential errors,
• Minimize late payments,

The Order to Cash process:

The process can include several steps:

1. Receipt of order : it is generally placed using a payment form by the customer. The aim is to track the page’s statistics.
2. Product availability : it’s important to check that the requested products are in stock and available for delivery. The aim is to avoid customer dissatisfaction due to delayed supply.
3. Preparing for delivery : once the product has been purchased, it must be sent to the sender. You need to anticipate delivery and find the best process to save time.
4. Order delivery : the order is sent to the customer via a carrier or an internal delivery service. The aim of the operation is to benefit from the best possible distribution network.
5. Billing : the order has been delivered, or the service provided, an invoice is generated and sent to the customer. The aim is to find a fast, automated way of sending the invoice.
6. Payment tracking : the customer company must honor its invoice before the due date. It’s important to keep track of payments by reminding your customers. This anticipates the need for a collection procedure, and helps manage customer risk.

This process varies from one company to another, depending on its specific features and internal processes. A service company will have a Order to Cash different from that of a product company.

However, the billing and payment follow-up remain a priority for these two types of company.

Order to Cash optimization:

OptimizeOrder to Cashis about improving the sales process. But it’s also about maximizing company revenues. This optimization involves a few key actions:

1. Digitization. It’s the key to automating certain tasks, such as sending invoices automatically, reminding customers and checking inventory in real time. Automation saves considerable time and reduces the number of errors.
2. Customer risk prevention. This is the starting point for all good good customer relations. Proper prevention can help you avoid unpleasant surprises. Is the cash flow of the company with which you have a commercial agreement healthy? Does the payer profile inspire confidence?
3. Payment and collection. This is the final phase of O2C. It often concentrates all the problems facing companies ( credit management). Because this phase doesn’t rely on you, but on your customer.

By using collection software:

• You can accelerate the digitalization of your business and track all operations using a customer dashboard.
• Anticipate potential customer risks thanks to a complete history of your business relationships.
• Automate invoice collection with a payment link.

Optimizing your O2C means using the ASTON AI Order to Cash SaaS platform.