An insightful summary of how these GPOs made their Order To Cash future-ready while reducing costs, improving metrics and keeping their customers happy!
While the adoption of Global Process Owner is constantly on the rise, there is still a lot of mist around defining the core responsibilities of an Order-to-Cash (OTC) GPO.
According to the text analysis of 100+ job descriptions for OTC GPOs, here are some common expectations:
Order To Cash Executives today believe in the potential for technology. Here are the standard benefits expected from RPA and AI:
Moreover, according to another survey by KPMG, 62% of respondents from larger enterprises are already investing or are planning to invest in digital labor.
However, here comes the shocker. According to the data shared at the European Shared Services Leaders’ Summit:
Surprised? Don’t be.
GPOs today are not ready to surf through the oceans of technology while keeping their A/R ship steady.
Here are 5 skills that helped Cargill, Adidas, Huntsman, Danone and McCormick rudder their Order To Cash in the right direction.
Process complexity is a significant driver of increasing process costs which is difficult to teach, slow to execute, and expensive to maintain.
Furthermore, governing compliance for these processes is difficult to establish and monitor, especially as regional variations push up against global standardization.
Hence, before starting on the journey for any standardization or digitization, GPOs need to have an in-depth process understanding.
Before jumping into the next best technology available, it is essential for the GPOs to take a step back and analyze their processes in-depth.
Poor understanding might lead to poor decisions at high costs and negligible results.
Hence, only after comprehensive analysis and benchmarking, GPOs are informed enough to make accurate decisions.
With this, Gunther Smets, OTC GPO for Cargill was able to make informed decisions and transform into a lean and simplified A/R
Transforming A/R processes for different BUs spread across different geographies is complicated. With the lack of proper planning and detailed roadmap for execution- it’s a nightmare!
Hence, GPOs need to lay strategic roadmaps for project implementation in order to:
Due to these challenges, it was really difficult for Huntsman to transform their A/R processes.
Improved their Order To Cash metrics as well as process visibility and transparency.
New process implementation based on unfamiliar technology such as RPA and AI undoubtedly results in kickback from most of the functional workers due to:
Hence, GPOs must have robust communication and influential skills to smoothen change management and technology adoption.
Here is how McCormick was able to address each and every single challenge posed during change management while implementing new solutions for cash application and deduction management:
In order to scale in the organic growth or M&A environment, it is essential to think beyond just customary benefits and focus more on value-additions including efficiency, customer satisfaction, and improved A/R health.
They need to think about the ‘bigger picture’ and drive global process standardization and continuous improvement for scalable and future-ready Order To Cash.
Hence, it is imperative for the GPOs to have a long-term vision and plan.
Yes. These are the 5 skills that helped Adidas, Cargill, Huntsman, McCormick, and Danone transform their Order to Cash operations for better.
Here is a quick overview of how 5 world-class GPOs prepared their Order To Cash in the age of AI:
Following the footsteps of these pioneers can enable businesses to tackle some of their most common challenges specific to shared services and help them on their journey for an optimized Order To Cash transformation.
However, the very first step in any OTC transformation, the first step is assessing your current process.
Ready to get started? Click here for a complimentary As-Is Process Assessment.
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company. The HighRadius™ Integrated Receivables platform optimizes cash flow through automation of receivables and payments processes across credit, collections, cash application, deductions, electronic billing and payment processing.
Powered by Rivana™ Artificial Intelligence Engine and Freeda™ Virtual Assistant for Credit-to-Cash, HighRadius Integrated Receivables enables teams to leverage machine learning for accurate decision making and future outcomes. The RadiusOne™ B2B payment network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes.
HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may achieve strong ROI in just a few months. To learn more, please visit www.highradius.com
Integrated Receivables optimizes accounts receivable operations by combining all receivable and payment modules into a unified business process. The Integrated Receivables platform provides solutions for credit, collections, deductions, cash application, electronic billing, and payment processing – covering the entire gamut from credit-to-cash.
The HighRadius™ Integrated Receivables platform stands out by enabling every credit and A/R operation to execute real-time from a unified platform with an end goal of lower DSO, reduced bad-debt, and faster dispute resolution while improving efficiency and accuracy for cash application, billing, and payment processing.
HighRadius™ Integrated Receivables leverages Rivana™ Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes. The Integrated Receivables platform also enables suppliers to digitally connect with buyers via the radiusOne™ network, closing the loop from the supplier Accounts Receivable process to the buyer Accounts Payable process.
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HighRadius Integrated Receivables Software Platform is the world’s only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway – covering the entire gamut of credit-to-cash.