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Master 'Order to Cash' with Oracle Analytics

The core of every business operation begins with a streamlined order to cash process. Companies can live or die based on whether orders are incomplete and cash payments are late. However, using a cloud-based analytics platform can improve your order to cash outcomes.  

Persona + Why Analytics Needed

Analytics is a natural addition to your order to cash reporting in your enterprise resource planning (ERP) and supply chain management systems. Oracle Analytics Cloud gives executives and analysts the ability to understand critical metrics and key performance indicator (KPI) trends, what is driving those trends, and the potential impact of changing policies or processes.

Single Source of Truth

Since the order to cash process spans supply chain and finance, many organizations have difficulty doing their analysis across multiple applications. Additionally, 79 percent of companies have three or more order capture and three or more order fulfillment systems, according to the Supply Chain Management Review Order Fulfillment Survey. So, gaining insight into order status, inventory, and trends becomes challenging. With a single source of truth, you can have visibility across order management, inventory, procurement, and finance applications, saving considerable time as you hunt for insights.

Order Performance/Efficiency

One way to look at the order to cash is to think of it as a timeline. By shortening that timeline and streamlining the processing, invoicing, and collecting payment for an order, you’ll speed up cash flow, cut costs, and serve your customers better in the long run, leading to an efficient, more effective order to cash cycle as compared against industry benchmarks.

Customer Base/Efficiency

The order process is key to developing a stronger customer base. The performance of an order greatly impacts customer satisfaction and prevents loss of money from returns and lost orders. With so much focus on customer experience, successful delivery metrics and perfect order rates must be monitored closely to understand process issues. Analytics and strategic execution are therefore necessary to maintain brand loyalty and customer retention rates.

Account Receivables/Finance

Are you a finance analyst who is building complex and confusing spreadsheets to monitor your cash flow, including days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), cash conversion cycle (CCC)?

For example,

  • What is the forecast DSO trend?
  • Why is DSO trending higher?
  • What might happen to DSO if we changed our standard terms?
  • How does our DSO compare against industry benchmarks or corporate targets?

One Oracle customer asking these same questions used Oracle Analytics. The company realized an average 20 percent improvement on DSO, which had a meaningful impact on the availability of its working capital.

Another Oracle customer, a Fortune 500 manufacturing company, used Oracle Analytics Cloud to reduce inventory costs by 22 percent and correlated forecast to distribute inventory to its retailers, minimizing discounting and waste. This fast turnaround resulted in higher liquidity and cash flow. This customer now has the ability to break down its revenue and profit, understand and build products accurately, and understand what to do next.

Analytics is a natural extension to your order to cash reporting. You can stay ahead of your competition with Oracle Analytics Cloud by giving executives and analysts the ability to understand critical metrics, what is driving trends, and the potential impact of changing processes. Check out Oracle Analytics and begin your journey to cloud today.

 

Our thanks to John Hung, Director of Product Management, who co-authored this article.

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