Optimize your Order to Cash ( O2C ) processes: How about reducing your dunning and reporting times by a factor of 6?
Digitizing the Order To Cash (O2C) process could be a major asset in the life of a company, if you want to become more competitive and switch to a cash culture. The Digital Credit Manager must be able to anticipate risks thanks to scoring and Big Data, monitor and analyze its business indicators thanks to intelligent reports, automate to gain in productivity and efficiency, but also collaborate with its company’s sales and customers. These objectives are increasingly accessible to all companies, whether SMEs, ETIs or large corporations. This is made possible by the democratization of technologies such as the Cloud, Big Data and Artificial Intelligence.
What’s the point of digitizing the Order to Cash process?
In this context, the aim of digitalization is to capitalize on new technologies to automate time-consuming tasks, bring mobility and real time, and transform raw data into business indicators, some of which are predictive. These points are priorities for CFOs and credit managers, as shown by a recent PwC study. The aim is to have the best decision-making indicators to gain in competitiveness.
Why is this important?
Trade receivables have a direct impact on WCR, yet many companies go bankrupt or are hampered in their ability to innovate and grow by a lack of adequate cash. In B2B, companies have a DSO of 60 to 90 days, and often manage their receivables fairly manually. Digital technology offers a wealth of opportunities for optimization, both in terms of intelligent automation of dunning, credit risk and financing, and in terms of dynamic business dashboards.
What kind of optimization can be expected?
In short, digitizing the order-to-cash process can halve late payments and reduce DSO by 15-20%. In an increasingly competitive environment, companies that know how to evolve with digital technology will have a major competitive advantage. A study by MIT Sloan and Capgemini shows that companies that transform themselves thanks to digital technology generate 26% more profits. One of our customers has cut its dunning processing and postponement generation time by a factor of 6. This time is now devoted to an in-depth analysis of the areas for optimization.
Is it complicated to implement?
There are 3 essential success factors: the right level of willingness to transform, the use of new technologies with the right partners, and change management. AstoniTF can provide the technology and create an adoption unit to support its customers. The will to transform must come from within the company. To simplify the transformation, AstoniTF also offers a platform delivered pre-connected to the main ERPs, Factors and credit insurers.
And what about the future?
Towards artificial intelligence and learning systems that will bring smarter automation and recommendations. What’s more, the latest studies show an additional margin potential of 5-15% thanks to AI. AstoniTF is moving forward on these issues to bring even more value to companies.
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About Aston iTF
Aston iTF offers you a complete SaaS solution for optimizing and managing your accounts receivable. 4 sources of cash are managed in the platform through 4 modules based on Cloud and Big Data technologies:
- Dynamic business dashboards
- Dunning & collection
- Managing the credit insurance policy
- Managing financing with Factors
Cegid, Atradius, Akanea, Touax, Bufab, MCB, … trust AstoniTF and more than 100,000 companies are re-launched daily.
Aston iTF was voted French Fintech of the Year in 2015, winner of the Deloitte European Fast500 in 2016 and winner of the Deloitte Fast 50 for growth two years running (2016-2017).
Contact: Aymeric Dupas – a.dupas@astonitf.com