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Introduction and challenges

The order to cash (O2C) cycle is the interface between the enterprise and its customers, which means it has a direct impact on business volume, cash flow and customer satisfaction, which are all critical to financial performance.  

As with all organization and process optimization projects, fluidity and efficiency are key objectives for the O2C cycle. Rationalizing costs is critical but the main goal is to facilitate customer relations and create the conditions which maximize revenue and cash.

It is important to consider the markets in which an enterprise operates (including competitive practices) to define the service levels to be achieved. Being perceived as “hard to do business with” is, for example, less prohibitive if the enterprise’s products or services are not perceived as substitutable or if the competition is played out on a different dimension (technical advances, price competitiveness) or if the customer is not the prescriber (B2B2C).

Finally, being aware of the diversity of stakeholders of the O2C cycle is key to a successful transformation. This is because the cultural biases and function objectives differ strongly between the sales teams, sales administration function, supply chain and accounting teams, to name but a few.  

How we can help

Argon & Co mobilize experts from the sales teams, sales administration, downstream supply chain, and finance functions to support its clients in the opportunity to cash cycle optimization projects.  

We advise on the following subjects

Optimization of the opportunity to cash process

  • Rationalize and streamline the process (business process improvement)
  • Digitize the O2C process (multi-channel, automation)
  • Value-added project ownership support in the context of ERP or CRM deployment
  • Review roles and responsibilities and governance (particularly in the context of projects to optimize working capital requirements)
  • Review internal control

Organizational redesign

  • Review the organizational model for the O2C process (location, profiles, sizing)
  • Set up or optimize service centers for business processes (telesales, sales force support, customer service centers)
  • Set up or optimize service centers for financial processes (invoicing, customer accounting, collection)
  • Supporting outsourcing processes

Specific studies

  • Analyze contracts to identify billing leaks (“revenue leakage analysis”)
  • Analyze COGS with a view to re-evaluating rates