The future of many companies in the oil and gas industry rests on their ability to manage cash. In this time of crisis, now is the time for companies to focus on optimizing and implementing best practices around their entire Order-to-Cash processes.
Key goals to focus on:
- Accelerate Cash: People and processes to manage cash every day
- Process Efficiencies: Standardize and streamline all aspects of Order-To-Cash processes
- Automation Efficiencies: Automation can increase processing and collection time ten-fold: Consider Technology Workflow Platforms, ERPs, and internal data management
As part of optimizing order-to-cash, companies should automate invoicing and collections processes. In addition, AR teams will need to up their game with collections and accelerate cash collections as quickly and impactfully as possible. Our approach to Order-to-Cash optimization focuses on five broad categories:
- Overcoming cash roadblocks in MSA contracts: Implementing appropriate data models, processes, and technologies to unclutter payment terms, penalties and interest, prepayments, deposits, collateral, and KYC documents
- Overcoming cash roadblocks in customers’ PO processes: Developing an operating model to eliminate deductions and payment hold up by ensuring clear processes around pricing, order quantities, change orders, and KYC issues
- Improving customer onboarding: Making the KYC processes and vendor set-up more efficient by providing internal/bank references and automating credit applications, using a combination of software and best-in-class processes
- Managing invoicing issues: Implementing processes, technology, and structure to handle delayed billing, automate invoicing via technology platforms, automate remittance from customers, and simplifying unclear contracts
- Managing collections: Automating all or most of collections, including automating collection letters, prioritizing collection calls with AI/ML (Artificial Intelligence/Machine Learning), DSP reporting, managing DSO trends, AI-driven deduction processing, and automating block order issues
Accelerating your cash flow always matters. In today’s environment, it may determine whether or not your company survives. A focus on and optimization of order-to-cash through streamlined processes, skilled individuals, automation, and AI-driven technologies puts your company at an advantage to get through these trying times.
Anne Callaway, Senior Consultant & Rakhee Das, Technology & Innovation Practice Leader – Sirius Solutions, L.L.L.P.
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