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SHIFT YOUR ORDER-TO-CASH INTO HYPERDRIVE

Accelerate the revenue growth and reduce your DSO for improved Cash Flow

Our order-to-cash process addresses many key questions
business leaders ask.

Order is received by sales team; price is logged and credit extended as appropriate.

Product is picked and packed; replenishment occurs.

How will you sell products and manage orders on a common platform?

Order is shipped and tracked.

Invoice is sent.

How will you fulfill orders from different distribution models and avoid customer confusion?

Payment is tracked and collected. Revenue is billed.

Receipts processed, returns managed, as necessary, and sales reporting is updated.

How will you ensure that cash is collected in a timely manner and financial reporting is accurate?

Confronting the challenges of order-to-cash integration

Despite the importance of order-to-cash and its impact on a deal’s revenue growth potential, acquirers too frequently put it on the back burner due to the complexity and challenges involved. In our experience, we have seen three major challenges that integration leader struggle with most. Identifying them is necessary; planning to surmount them is critical.

Challenge #1: Picking the right order-to-cash integration approach

Oftentimes, it’s not clear what the right order-to-cash integration strategy should be. Merging companies can have vastly different order- to-cash structures. Do you focus on all business processes involved in order-to-cash or just a select few to enable product ordering? Should order-to-cash business processes be integrated right after Day One or do you wait for rest of the supply chain integration and IT infrastructure to come together first? What are the trade-offs to prioritize up front? These are the types of factors that increase the complexity of order-to-cash integration.

Challenge #2: Varying objectives across functions.

Order-to-cash integration in a merger environment requires having leaders across key functions such as sales, operations, and IT aligned on the end-state vision. Time and resources will be needed from the IT and operations functions to change processes, update ERP systems, and conduct trainings across distribution facilities. Depending on the size and scope of change across geographies, implementation can be distracting. Leaders such as CIOs and COOs may push back entirely or end up compromising their functional integration priorities.

Challenge #3: Limited information to plan effectively

Planning for and executing on an order-to-cash integration strategy can be daunting. To plan rapidly and execute accurately, a deep understanding of the target’s current state is required even before legal Day One. This can be a great challenge for integration leaders when working in a pre-close regulatory environment where both sides are wary of sharing information, thereby contributing to loss of momentum which is rarely regained post Day One.
At the root of these challenges lies a common theme: The cross-functional nature of order-to-cash management makes it especially difficult to successfully integrate. Leaders from the commercial, financial, and operations functions should work in tandem to ensure an effective integration, a task made difficult by functional priorities. If order-to-cash is de-prioritized, loss of momentum from the merger could lead to missed operational efficiencies and cost-reduction opportunities from integrating order-to-cash processes. Furthermore, the new company’s approach to market could suffer, and the lost potential of new or broader sales could result in missed synergy targets.

Five focus areas for successful order-to-cash execution

By focusing on five key areas, organizations can surmount the challenges associated with order-to-cash integration and position the new company for sustained growth.

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