Order to Cash (O2C)

Order to Cash (O2C)

Contents :

1. La définition de l’Order to Cash :
2. The Order to Cash process:
3. Order to Cash optimization:

La définition de l’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 :

• Le processus de vente,
• De maximiser les revenus,
• Reduce potential errors,
• De minimiser les retards de paiement,

Les étapes de l’Order to Cash :

Le processus peut inclure plusieurs étapes :

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 this operation is to benefit from the best possible distribution network.
5. Billing : Once the order or service has been delivered, 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-based company.

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

L’optimisation de l’Order to Cash :

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

1. La digitalisation. 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.

Promoting an “Order to Cash” Culture Throughout the Company

Getting the entire company on board with cash flow monitoring isn’t always easy. Here are four strategies to help make it happen:

• Share clear information: automatically generated dashboards (DSO, aging report, disputes) rather than spending days producing analyses. Everyone can see performance at their own level: subsidiary, branch, sales representative, or customer portfolio.
• Automate low-value tasks: predefined follow-up scenarios, by customer type, with or without human oversight. The team focuses on analysis and prevention.
• Continuous improvement: Edit a script or follow-up email yourself with just a few clicks to test what works best for different client portfolios.
• Let customers take the lead: an online space where they can view their invoices and account statements, submit a payment notice, or report a dispute. Fewer unnecessary interactions for your teams, greater satisfaction for your customers.