How do you optimize the Order to Cash process?
Every finance manager knows that the Order to Cash (O2C) process is the lifeblood of any organization. Since it's the journey every customer goes through, from the time an order is placed to the time payment is processed, a smooth, efficient and error-free O2C process is crucial to an organization's financial success and customer satisfaction. But how can we ensure and improve the efficiency of this complex process? The answer lies in Process Mining.
What is Process Mining?
Process Mining is a data analysis technique that aims to discover, monitor and improve real processes by extracting knowledge from event logs, which record the execution of processes in information systems.
What is the impact of Process Mining on the O2C process?
Implementing Process Mining within the O2C process can yield significant benefits. McKinsey research shows that companies that implement Process Mining can achieve up to 20% more efficiency in their O2C process. This means faster order turnaround, fewer errors and delays, and ultimately happier customers. In addition, using Process Mining can lead to a 10-20% improvement in operational efficiency, according to the company.
But Process Mining provides even more optimization. Another study conducted by Gartner showed that using Process Mining can lead to a 20-30% reduction in order-to-cash process lead time.
In addition, companies can significantly reduce their Days Sales Outstanding (DSO). Research by Gartner shows that with Process Mining, companies can reduce their DSO by an average of 15%, which has a direct impact on cash flow.
Process Mining offers opportunities for finance managers
For finance managers, Process Mining offers a gold mine of insights and opportunities. With real-time insight into the O2C process, finance managers can make data-driven decisions, manage risk and deploy their team more efficiently.
This is obviously hugely important at a time when digitization, automation and data analytics are key to competitive advantage. In this regard, Process Mining is an essential tool for any finance manager looking to move their organization forward.
Rockfeather and Process Mining
At Rockfeather, we understand the importance of efficient business processes. With our expertise in Process Mining, we help organizations optimize their O2C process, reduce costs and increase competitiveness. Contact us to find out how we can help you take your O2C process to the next level.
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