What challenge(s) do our clients face?
Providing high quality and reliable service throughout the Order-To-Cash process is a pre-requisite to compete in today’s market, and with ever more demanding consumers, can become a platform for differentiation
Service level is a broad term which can reference many attributes – product quality, On Time In Full (OTIF) delivery, order tracking, flexibility – and understanding how to get it right starts with understanding the needs of your customers. Order-To-Cash is becoming an increasingly relevant strategic pillar, as digital transformation and changing preferences have reshaped the consumer journey to put Supply Chain closer to the end user, and Customer Services center stage.
Realizing an Order-To-Cash strategy is a challenging journey. By nature, the process is complex, due to the high volume of transactions, interdependencies with multiple functions and direct customer impact. We have often seen organizations across different industries struggle to:
- Truly understand the needs of their consumers, and translate these to Supply Chain requirements throughout the Order-To-Cash process
- Design and implement the operation and/or network to deliver on these needs
- Embed flexibility to enable fast reaction to market changes, failures or shocks within the system
- Build a continuous improvement mindset, listening to customers throughout the order cycle
How do we help?
We support our clients to design and implement an effective Order-To-Cash strategy, putting the customer at the center
We work together with you and your team to incorporate controls throughout the Order-To-Cash process to increase revenues and margins, reduce risk in cash conversion cycles and improve operational efficiency. Our methodology helps you to:
What are the benefits?
Implementing a comprehensive but streamlined Order-To-Cash approach benefits both you and your customers:
- Increase service level: improve performance in key attributes to drive customer satisfaction
- Improve visibility: closer tracking of each step in the OTC process, for you and the customer, to identify bottlenecks and support continuous improvement
- Free time of your senior team: guarantee clarity over roles and responsibilities and minimize time in meetings through an efficient governance, giving seniors more time to focus on core business issues
- Measure competitiveness: monitor performance against Cost-to-Serve targets
- Increase productivity, reduce headcount: reduce time spent on non-value-adding tasks and issue resolution, and increase efficiency of activities
- Reduce costs: reduce quote and order errors
- Protect cash flow: ensure credit policies and commercial conditions are being adhered to, and shorten the cash conversion cycle
How does it work?
A tailor-made and hands-on approach, to achieve both short and long-term results
Every business is different, and no one knows your business better than you do. The strongest solutions come from a combination of your insight and our technical expertise, leveraging cross-industry best practices to develop a best-in-class approach suited to your needs.
Involving professionals across the organization throughout the process is critical – not only to incorporate their functional inputs, but to guarantee from the beginning that the team understand the need for change and have all the skills and tools to implement it.
Our methodology is structured in five steps:
Our client, an FMCG organization with revenues over $4bn USD, had attempted to implement three major changes simultaneously – a new GTM model, a new 3PL partner, and a new system. Issues in the transformation had severe knock-on impacts on the Order-To-Cash process, which was on the brink of collapse. The organization sought help from Integration to turnaround the Order-To-Cash process and minimize customer impact.
We undertook an in-depth assessment of service level failures, considering industry benchmarks, to isolate the source of each issue. In each case, we redesigned or adjusted the relevant process to correct the gap, and worked with internal teams to implement the new ways of working.
The leading Service Level KPI increased by 12 percentage points, surpassing the pre-crisis level. Additionally, as a result of the redesigned processes and solutions in place, the client received a Top Vendor Service Level award from one of their main Key Accounts.
Our client, an Agribusiness and fertilizer business with revenue over $7 bn USD, had recently redesigned its GTM with the intention of increasing market share. The new strategy put increased pressure on the supply chain, which was already suffering from several critical gaps.
In implementing the new GTM, the organization experienced a drop in availability on time (essential for a harvest-driven supply chain) and the sales team quickly became overloaded, spending a significant portion of their time on Order-To-Cash activities which would normally fall under the remit of a customer services team.
We focused on the Brazilian operation, and started by redesigning the S&OP process to guarantee availability without overstocking to protect margins. Following this, we worked across functions to redesign Order-To-Cash, integrating the sales force with production to reduce total order time and improve productivity, supporting the team through the implementation.
Increased product availability and 30% decrease in sales team time dedicated to OTC activities.
To strengthen its portfolio, a multinational client in the field of seed production and technology development acquired a global competitor. Supply chain maturity was a key target in the Strategic Plan, and formed the basis of the integrated business’ competitive advantage.
The organization asked for Integration’s support to integrate the core supply chain processes, leveraging best practices to capture opportunities to improve quality, effectively manage capacity, and provide better service to customers.
We focused the project on planning and delivery processes, assessing the end-to-end steps to identify pain points and set priorities.
In delivery, we redesigned core processes to eliminate bottlenecks and meet service level targets, while in planning we clarified roles and responsibilities within the team, and implemented a new governance to improve day-to-day tracking and decision making.
Where necessary we adjusted the organization structure and systems to enable the new ways of working, and supported the team on the ground throughout the implementation.
The structural, governance and process changes were successfully embedded in the day-to-day, resulting in improved performance in critical indicators:
- 35% increase in On-Time
- 60% increase planning accuracy of the planning, leading to lower write-off
Our client, a Chemical business with revenue over $16 bn USD, wanted to revolutionize its service level following a currency devaluation to defend its market-share from foreign competitors.
The existing order cycle was highly immature, with a large amount of manual intervention causing delays and impacting client satisfaction. Integration was asked to support the business in lifting the bar in Order-To-Cash.
We conducted a full assessment and gap analysis of the end-to-end Order-To-Cash process, and worked with an internal team to redesign the activities and flow, as well as the enabling Customer Service structure.
We prepared a clear long term roadmap for the organization to implement all changes on a feasible timeline, prioritizing low-hanging fruits to deliver fast results and reinforce buy-in from the team.
Within 6 months, the business had significantly reduced its cash conversion cycle, freeing more than USD 10 MM per year on working capital, resulting in a 100% self-funded Customer Service Transformation
OUR INDUSTRY EXPERIENCE
We have extensive experience in Customer Services and Order-To-Cash improvement projects, developed over the past 20 years in industries including such as Foods & Beverages, Agribusiness, Consumer Goods, Electronics, Chemicals and Petrochemicals.
From delivery at different levels in countries all around the world, we have built a robust methodology to form the foundation and starting structure for projects of this type – however every business is different, and just as critical to success is leveraging your team’s knowledge of your market and ways of working. By bringing together cross-industry best practices and a deep understanding of your needs and pain points, we develop solutions which truly fit your reality and enable you to hit your objectives.