What Is the Order-to-Cash Process?
The Order-to-Cash (O2C) process — also known as OTC — refers to the end-to-end business workflow that starts with a customer order and ends with payment collection. It's a critical function in both B2B and B2C operations, especially in industries like healthcare, logistics, and manufacturing, where accuracy and timing are crucial.
A well-optimized O2C process enhances operational efficiency, reduces manual errors, and accelerates cash flow.
Key Steps in the Order-to-Cash Cycle
Understanding each step in the O2C workflow is essential for building a scalable and customer-focused business.
Order Management: Receiving and validating customer orders. This includes checking pricing, product availability, and delivery terms to avoid downstream delays.
Order Fulfillment: Picking, packing, and shipping the product or service. Efficient fulfillment ensures timely deliveries and high customer satisfaction.
Invoicing: Creating and sending accurate invoices promptly. Delayed or incorrect invoices can slow down the entire cash flow cycle.
Payment Processing: Accepting and confirming payments via preferred methods (bank transfer, credit card, etc.). This step also includes reconciliation and fraud detection.
Accounts Receivable: Tracking outstanding payments and following up to ensure timely collections.
Customer Service: Addressing order-related questions, delivery issues, and payment inquiries. Strong customer service supports a positive buyer experience and loyalty.
Why Order-to-Cash Matters for Your Business
A streamlined O2C process is a competitive advantage. It connects critical departments—sales, finance, logistics, and customer service—into one cohesive flow. Companies that invest in O2C automation see improvements in both operational performance and financial health.
Ready to Optimize Your Order-to-Cash Workflow?
If you're looking to automate or improve your order-to-cash process, FREJA offers tailored solutions for healthcare, pharma, and logistics industries.
Talk to us about how we can help you reduce costs, increase visibility, and boost customer satisfaction through an efficient O2C strategy.
