![]() ![]() The invoicing system needs to receive the correct information from staff who oversee front-line functions. Research compiled by Aberdeen Group reveals that companies that excel at O2C performance require manual input for only 16.2 percent of invoices, compared with nearly 80 percent for companies that scored in the bottom tier. When accurate invoices are sent out on a reliable timetable, staff in Finance can effectively forecast cash inflows and plan for expenses accordingly. The success of order shipping depends on product logistics, which is why the shipping portion of the O2C process needs to be regularly audited to ensure it meets high performance standards.ĭata from the order and fulfillment management functions must be immediately updated for the shipping team so they can plan shipments around carrier pickup schedules and get orders to customers on time.Īs is the case with anything related to credit management and accounts receivable, invoicing delays and inaccuracies can snowball and lead to cash problems that disrupt the entire organization. Paper orders-as well as legacy software programs that don’t share order data-lead to inaccuracies, costly clarifications, and bottlenecks. ![]() Orders that are sent for fulfillment should be in a standardized digital format so that any associate who begins work on an order can clearly decipherer all of the relevant details. Then you need to alert the customer and cancel the order, which can help avoid billing issues. In the event that an out-of-stock order does make it to fulfillment, it must be flagged immediately. Inventory counts should be updated on the sales side in real time in order to avoid accepting orders that cannot be completed. Automated credit management makes accounts receivable easier, and strategic credit guidelines also ensure you issue credit only to worthy customers.Īutomated inventory management software is an important component of the fulfillment process. Meanwhile, returning customers who were denied credit on a previous order, or who are applying for the first time, should be treated just like new customers. The order management software should send returning customers who have current credit approval directly through to the fulfillment stage. Automated software can take care of straightforward approvals or denials, and finance personnel can be notified for cases that require a more thorough review. In cases where credit is applicable, every first-time customer, when an order is placed, should automatically be sent through a credit approval process. ![]() Make sure new orders are organized properly, and notify relevant parties immediately to ensure accurate and timely fulfillment.ĭiligent credit management on the front end of O2C minimizes issues that could occur as you reach the end of the process. A study by IBM found that companies who adopted best-in-class O2C practices were 81 percent more effective at order management than those who had not. Your order management system must be automated, and instant notifications should kick off a series of actions in other departments that will keep every unit on top of the order. Whether it’s through an ecommerce platform on your site, an email to the sales department, or even notifying a sales rep in person, you are responsible for the order management actions as soon as the purchase is confirmed. The first step of the O2C process is order management, and it begins as soon as the customer places an order. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |