The order-to-cash (O2C) process is a defining part of a company’s success, and it also plays a big role in driving an organization’s relationship with the customer. While many companies focus the bulk of their resources on the period up until the customer places an order, optimizing the O2C process can yield remarkable benefits that ripple throughout a business.
The good news is that the various functions involved in O2C can be improved significantly through the use of an integrated software solution. You can streamline your O2C process from beginning to end to serve customers faster and more effectively, minimize errors and delays, and ensure performance data has maximum impact on the company.
What is the order-to-cash process?
Order-to-cash is the entirety of a company’s order processing system. It begins the moment a customer places an order. Everything before that time is related to some function of branding, marketing, or sales. It’s important to note, however, that branding, marketing, and sales functions do not immediately cease when a customer places an order—›but their core activities are generally located in the phase of the customer relationship that lies before the O2C cycle begins.
While some may think the O2C process is complete when the order is received and paid for, there are other important steps that occur after these actions. Activity data recorded throughout the order-to-cash cycle must be analyzed to help management identify opportunities for improvement or optimization.