The Order-to-Money Course of (O2C) is without doubt one of the cross-company processes that may both make or break your corporation. The outcomes of this mission-critical course of have a direct affect on buyer satisfaction, how properly you handle money move, and the way glad your workers are.
Nevertheless, the complexity and breadth of the O2C course of make it one of the troublesome processes to trace and optimize. It’s secure to say that there’s a nice alternative for enchancment within the O2C course of.
Let’s begin with the fundamentals of O2C.
What’s an order-to-cash course of?
The aim of the O2C course of is to ship items to a buyer for money. In a typical ex-warehouse gross sales state of affairs, the method move is:
- 1. Order creation
- 2. Order success
- three. Order transport
- four. Invoicing
- 5. Fee
These are the core steps of the method. Nevertheless, if you recognize something in regards to the O2C course of, you recognize it’s by no means that simple! Consider further steps that make up the method, corresponding to: B. Posting, making a supply or deleting a credit score verify. There are thousands and thousands of transactions which can be cross-departmental and cross-system, making it nearly unimaginable to get a transparent view of all the course of.
The method consists of two most important components: Order administration and Accounts obtainable. They usually have barely completely different objectives.
Order administration consists of all steps from order creation to transport. The dispatch of the order then triggers the invoicing. Order administration objectives embrace bettering the proper order charge, on-time transport charge and the cycle time for order success.
Accounts obtainable begins from the time the bill is issued and ends with the bill settlement. The objectives of the receivables embrace decreasing overdue funds and day gross sales (DSO).
Within the O2C course of, these two sides (order administration and accounts receivable) are extremely depending on one another. Order administration can’t obtain actual effectivity with out the help of claims and vice versa. Nevertheless, the groups controlling these two components of the method typically work in silos, which isn’t an environment friendly course of.
Different widespread challenges within the O2C course of are:
- Excessive error charges via guide order entry, which results in pricey and time-consuming rework
- Badly maintained buyer grasp information result in delays and misplaced gross sales
- Supply success points that have an effect on buyer retention charges
- Excessive DSO charge, impaired money move and missed funding alternative in different enterprise areas.
First, use course of mining to determine the O2C course of
Course of mining creates a direct connection to the techniques related to the O2C course of, e.g. B. SAP and different ERP (Enterprise Useful resource Planning) techniques. With the assistance of an built-in information transformation layer, the expertise transforms information right into a course of diagram that information all the course of from begin to end. It information all course of variations, bottlenecks, rework and exceptions.
Instance of a course of graph
Advances in automation
Course of mining lets you discover the unused automation potential in your processes. The quickest strategy to drive the transformation in O2C is to deploy RPA (Robotic Course of Automation) together with Course of Mining. For instance, in course of mining, you’ll find an issue with the mail (i.e. if the order has been picked and is able to ship, it by no means occurs on time). This will delay supply to the shopper and likewise implies that incorrect inventory ranges are displayed within the system.
In case you dig a little bit deeper, you’ll find the primary explanation for this drawback merely to be that your transport specialist has too many gadgets to course of, leading to a delayed drawback with the mailed items. An efficient answer to that is to have a software program robotic deal with the mail drawback, relieve the mailing specialist of the work and make sure that the mail is delivered on time.
Steady monitoring and enchancment of the general course of
However course of mining doesn’t cease there.
After you’ve automated your processes via RPA, you should utilize course of mining to trace the outcomes and make sure that the automation is having the supposed impact. It is sensible that after the automation, you need some perception into the way it will have an effect on the remainder of the method. For instance, is the method cycle time bettering? Is your on-time transport charge bettering? These are all metrics that Course of Mining can observe with the intention to constantly monitor and enhance the method.
It can be helpful to tweak your course of in different methods earlier than introducing automation.
For instance, one in every of your prospects frequently complains that their shipments arrive later than anticipated. With course of mining, you possibly can verify whether or not shipments to this buyer really arrive a day later than anticipated. The primary trigger on this instance is that the lead occasions within the system are sooner or later shorter than the precise lead occasions. This implies that there’s a discrepancy between the date the shopper expects their order and the day they really obtain it. On this instance, a easy adjustment of the grasp information is enough and ensures that the shopper is glad.
Preserve processes on observe and predictable
Processes can change like something. So it is sensible that your automation adjustments with it. A mixture of course of mining and RPA will enable you control your course of, so you possibly can act shortly if adjustments change the method, whether or not it’s legislation, competitors, or perhaps a pandemic.
Improve O2C enhancements with UiPath
Helpful options to assist hold your O2C course of on observe embrace the flexibility to assign robots to do duties mechanically in UiPath Orchestrator to allow them to repair undesirable idle occasions or discrepancies in close to real-time. The UiPath Motion Heart ensures that the suitable individuals are introduced updated when there are some exceptions that have to be addressed.
UiPath Course of Mining combines world class course of mining and RPA. On this approach you cannot solely uncover the automation potential in your O2C course of, but in addition constantly optimize and monitor the automation.
Are you able to see the advantages of course of mining in your personal group? With a ready-to-use UiPath Course of Mining Connector for SAP O2C, you can begin bettering and automating your O2C course of nearly instantly. Contact us to get began.