What is an order to cash process?

Order to cash is a business process that enterprises can use to

manage sales orders and customer payments. Companies strive to
optimise this process, as it helps them to achieve maximum
efficiency in business operations and align these operations with
the dynamic requirements of a business

To have an efficient order processing system means that an

organisation may reduce financial risks, build customer
relationships and automate various purchase and finance
processes

What is the importance of an order to cash cycle?

'An order to cash cycle helps companies to utilise their resources

aptly and have more working capital. A comprehensive order to
cash process may ensure that there are fewer operational
bottlenecks and the organisation fulfils customer orders within
deadlines. With OTC, companies can better manage the costs
associated with conducting their business.

What are the stages involved in order management?

There are five essential stages involved in order management that facilitate correct
order fulfilment and customer satisfaction. The first is receiving an order where a
customer places their order with a company. This stage includes payment collections
and sending order summaries to the warehouse. The second stage is processing the
order. Here, a company confirms if products are in stock and after that, sends them to
sorting areas from their inventory. The third stage is packing the order, which involves
selecting the right packaging materials and correctly labelling the packages.Then
comes the shipping and tracking stage where the company ships the product and
assigns unique tracking numbers. Companies share these tracking codes with delivery
partners and customers, allowing customers to monitor the delivery progress of their
orders. The last stage is the after-sales experience. Here, a company requests its
customers to share their feedback and delivery experience. This stage also focuses on
managing returns and refunds, along with building great customer relationships.'