This article is published in collaboration with the Digital Transformation and AI Awards and Summit. These are two separate B2B events organised by 31 Media. If you wish to exhibit your tech solutions or to advertise your brand at the event, please get in touch at +44 (0)203 931 5827. In this article, you’ll learn how you can leverage automation to optimise order-to-cash.

Author: Kauleen Adiutori, Chief Operating Officer at TreviPay

Leveraging automation to optimise order-to-cash

Automation has often been associated with disruption and logistical challenges. However, the narrative has shifted as automation has revolutionised our approach to business operations. Far from being a cautionary tale, automation has become a catalyst for optimising essential tasks, driving operational efficiency and enhancing both employee and customer experiences. For organisations aiming to scale effectively while maintaining quality, embracing automation is not just advantageous—it’s indispensable.

In today’s fast-paced commerce landscape, organisations increasingly adopt automation systems, particularly Robotic Process Automation (RPA) technology, to streamline the order-to-cash (O2C) process. From my experiences working with large enterprises, RPA – a market expected to grow to more than $13 billion by 2030 – represents a transformative leap in back-office operations. RPA can streamline complex, repetitive tasks, such as processing orders or cash applications while enhancing accuracy, efficiency and customer satisfaction.

What is order-to-cash?

O2C describes fulfilling customer orders, beginning when a customer first places the order through when the business receives and processes payment. For B2B transactions, an efficient O2C process also enables merchant invoicing and collecting from other businesses. According to a recent survey of global business buyers, paying with net terms (30-, 60-, 90-days to pay) on an invoice – also referred to as trade credit – is the most preferred way to pay, and 51% would even switch to a different supplier if it offers flexible net terms. This underscores the need for businesses to be able to offer this payment preference.

As a business B2B sales channel expands, optimising the O2C process not only enhances the customer experience but also reduces costs, eliminates inefficiencies and ensures prompt payment. By minimising friction and effectively managing O2C with automation tools, businesses can create a better purchase experience and boost loyalty. 

Does your O2C need support?

There are a few common signs when a business is not maximising its O2C process, including ageing Accounts Receivables (A/R), missing payments, increasing bad debt and growing customer complaints from lengthy processes and errors. Business customers are also increasingly requesting eInvoicing, which brings its own complexity and unique requirements for a merchant.

Ignoring any of these signs can quickly manifest into more complicated problems. For example, salespeople may need to spend time dealing with A/R activities taking them away from key sales opportunities. Ageing A/R could also lead to an increased Days Sales Outstanding (DSO), the average number of days it takes a company to receive payment, which can signal poor cash flow impacting other business needs.

Benefits of O2C automation

Businesses looking to optimise the O2C process must keep scale and quality in mind. Forward-thinking leaders should ask themselves: what does our customer or employee experience look like when this automation is done correctly?  

Scaling effectively is essential to maximising the profitability of a B2B growth strategy. Companies often see B2B profits diminished by labour-intensive processes and increased capital expenditures without proper scaling. When scaling efforts are aligned with high-quality service, both customer and employee experiences improve, leading to greater overall efficiency and satisfaction. Balancing these elements ensures that as a business grows, it does so in a way that enhances value for all stakeholders.

When scale and quality are addressed simultaneously and done right, an efficient O2C process should include:

• A/R ageing that doesn’t exceed 60 days past due
• Minimal bad debt
• Delighted and loyal customers
• Expenses scaling more profitably with growth
• Invoices are delivered when and how the buyer wants them
• Salespeople focused on sales opportunities
• Payments are received on time and properly reflected on the customer’s account

Today, back-office automation is integral to reducing inefficiencies and eliminating monotonous work, from routine administrative tasks to complex decision-making processes. Leveraging AI and RPA tools in the order-to-cash process can help businesses achieve faster, more cost-effective operations. This leads to a better payment experience and an increased likelihood of returning customers.

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