What are the top challenges and solutions to automating your OTC process?
OTC or Order to Cash is the core business process that determines cash flow and revenue in your organization. This process encompasses the whole sales cycle of your organization. It starts with customers placing the orders and ends with recording the payment in the general ledger. The whole OTC process involves many phases including placing orders, fulfilling orders, shipping, sending invoices, payment, and recording the payment in the general ledger.
A conventional OTC process is complex and you need a fully dedicated team to handle it. There is a lot of data and repetitive processes which take your valuable time. Sometimes there is a scope of errors in an entry, calculation, and credit limit. But with automation implementation, you can enhance your existing OTC process with predictability and accuracy. You can have an understanding of your working capital, cash flow, and revenue with an automated OTC process.
Read this post to know the top automation challenges and solutions to your OTC process.
#Challenge 1: OTC Automation is confusing
Most businesses think that OTC automation is confusing. Automation decreases human intervention in processes to zero down errors. It also automates repetitive processes to save your time for more important tasks. When you automate your existing OTC process, you need to change many processes. Most CEOs find it confusing to move from an existing OTC process to the new one in the fear of too much transformation and cultural change.
#Challenge 2: You need a new dept to accelerate OTC automation projects
Automation related to RPA has become a cliche but not clear. People talk more about their benefits rather than the implementation process. Most CTOs are clueless about how they can automate their existing OTC process. They have fear of deploying more human resources and capital to accelerate the OTC process.
#Challenge 3: Automated OTC processes are difficult to scale
Chris Gardner, the principal analyst at Forrester reveals that thousands of automation bots are beyond the expertise of many companies. Due to this, the service market to accelerate RPA is rising. Hence, most businesses think that automated OTC processes are difficult to scale.
Why you need to automate your OTC process?
The IBM Institute for Business Value reveals that an advanced order to cash can enhance the performance of any company up to 83%. Automation frees up employees’ time to spend on critical projects. This same study also reveals that OTC automation can enhance the end-to-end cycle of any company up to 60%.
You can see the distinct differences between the companies using data automation and the ones which don’t:
Automation is bliss for the OTC process
Although companies find it challenging to scale the automated OTC process, automation is a blessing. When you automate your existing OTC process, you increase productivity, decrease lead time, and smoothen your cash flow. Moreover, order processing becomes faster as it speeds up the accounts receivable process. With an automated OTC, you reach a better position to convert your orders into revenue.
The key automation strategies to improve your order to cash cycle are:
Automate your data
You achieve a lot of data in the whole process of order to cash. These are data on customers, order types, order times, accounts receivable, patterns, preferences, etc. Without an automation mechanism, this data gives you a hard time. It’s become quite overwhelming for you to keep a track of all this data. When you implement RPA, it trains your machines to analyze the data and get important insights with real-time reports. You can have clear visibility of your cash flow with an automated OTC.
Set your KPI
Setting Key Performance Indicators is essential to evaluate how your OTC is working. When you set KPI for such evaluation, you get to know your strong and weak areas in the OTC cycle. Accordingly, you can work on the weak areas to enhance the performance. For example, you can use the percentage of customers who pay timely as a KPI. This happens with automation implementation in your order-to-cash cycle.
Assess new accounts for credit quality
Manual assessment of new accounts with good credit quality may take time. When you implement automation, it enables your OTC process to search and analyze fresh accounts for the quality without your intervention. It automatically analyzes and recommends worthy accounts to go for. In the process, it analyzes various factors like credit history, payment time, cash flow, revenue, etc.
Enforcing credit limits
Credit control and management in a typical OTC process is a stressful job. You need to set different credit limits for different customers based on their credit reports. But automation helps you in this process by reducing your efforts and time. It automatically analyzes the credit reports to set credit limits for the customers.
Automate your OTC with CommerceCX
We help you with data automation that has a wide impact on every stage of the order to cash cycle. Our team strives to know your requirements and plan a comprehensive automation strategy right from managing sales orders, invoicing clients, and collecting payments. We help you to run a smarter OTC process by cutting down your time and efforts for mission-critical tasks.
Talk to our experts today to automate your OTC process.
About CommerceCX: CommerceCX is a global consulting, design, and development firm. We provide organizations with the solutions and services that support the transformation of a commerce ecosystem. We specialize in CRM, Quote-to-Cash, Lead to Cash, and have strong Salesforce, Apttus, and Microsoft Technologies expertise. Leveraging our solutions, organizations can connect technology, data, and insights to unify and enhance the buying, selling, and service experience that powers the commerce ecosystem.