Is Your Sales Order Entry Process Affecting Your Days Sales Outstanding?

 

 

Days Sales Outstanding (DSO) is one of those key indicators that ultimately indicates how streamlined your order management process is — how quickly your product or service gets to your customer and how efficiently they pay you. There are many areas within an organization’s process that can affect this.

I’ve seen companies shave 3-5 days of DSO just by switching from paper/mailed invoices to electronic invoice delivery. However, recently, I’ve been learning just how much DSO can improve even more. One notable area of focus is the sales order entry process — a process that, if not working efficiently, can negatively affect customer service and DSO.

I had the privilege of sitting in on a presentation by Adrian Posteraro titled:  “Overcoming the Negative Business Impacts of a Manual CS Work Environment”. Adrian’s background is quite impressive with 27 years at MEDRAD and heading up Global Customer Support and Global Customer Satisfaction, as well as being responsible for maintaining Business Excellence and Regional Field Service. It’s safe to say that Adrian is more than qualified to speak on behalf of his experiences.

MEDRAD Sales Order Environment Before Esker

MEDRAD previously had a 100% manual sales order entry process, with orders taking anywhere from 7-10 minutes to be fully entered into the ERP system. Aside from the burnout of customer service agents, there were some particular manual sales order entry processes that affected customer service, and, most notably, DSO.

MEDRAD was dealing with backlogged order processing, and missing same-day shipping requests. Order entry errors were creating issues with getting invoices paid, resulting in rebills/re-invoicing. Additionally, the collection department was spending excess time chasing down payments. MEDRAD needed to improve the sales order entry process to mitigate these issues to improve customer satisfaction and DSO.

Sales Order Processing Automation with Esker

What happens when you automate your sales order entry process with Esker? You achieve world-class results! Esker customers consistently see their order entry error rates decline, (i.e., less rebilling/re-invoicing) and backlogged order entry disappear since orders are getting out the door faster and more accurately (i.e., invoices get paid faster).

Which brings us back to square one — improved DSO — which I started out by describing it as one of the key indicators that helps determine how healthy and efficient your order management process is. Now that your gears are turning, what benefits would automating your sales order entry process help your company realize? Leave your comments below!

The 7 Essential KPIs of Accounts Payable [SlideShare]

Even in the digital age, many accounts payable (AP) departments remain inundated with paper and manual-based processes … which seems crazy when a recent study by Aberdeen Group found that 60% of organizations identified eliminating complex and/or risky processes as a top priority for digital transformation.

Process metrics are the key to improvement

Managing all of the paper in your AP department isn’t an easy job, and it doesn’t leave much time to assess your process and find where issues are. But to make improvements, you’ve got to start somewhere — and Key Performance Indicators (KPIs) are a great place.

The 7 essential KPIs of accounts payable

Don’t worry, we’ve got your back. This SlideShare will give you a head start in exploring the effectiveness of your process with the 7 fundamental KPIs of AP. Let’s jump right in!

How can you identify problem areas in your process?

  1. Measure the number of invoices processed per employee (or per month). You’ll notice an impressive boost in productivity after automating your invoice processing.
  2. Calculate the cost of processing each invoice. They quickly add up to an expensive AP process. According to a 2015 PayStream Advisors study, the average all-inclusive cost to manually process an invoice is $40.70. Yikes!
  3. Gauge the timeliness of your payments. Chances are you’re missing out on early payment discounts if you’re having to manually process invoices. That’s more money down the drain.
  4. Measure your captured discounts. Don’t have any? That’s a red flag for bigger problems within your AP department.
  5. Check the level of automation already implemented … if you have any. Sorry, email doesn’t count as automation!
  6. Determine the percentage of duplicated invoices paid. Your supplier may enjoy the extra payment, but we promise your boss doesn’t.
  7. Calculate the percentage of erroneous payments. Payment errors put a large strain on the AP department.

Digital Transformation – More Than a Simple Challenge, it is a Perspective Shift for Companies!

 

We are excited to share a guest blog post from SlimPay today. This post focuses on how digital transformation is creating change for companies a crossed several industries. Companies have to adjust how they develop and market their product in order to leverage opportunities through digital trends. This blog post is a two-part series when you’re done reading this post make sure you check out part 2!

GAFAM (Google, Amazon, Facebook, Apple & Microsoft) have transformed consumers’ habits, propelling them in a 100% digital world. Many other digital companies since then appeared in several sectors, from transportation to energy or leisure, generating an expansion of digital offers and making it sometimes difficult for traditional companies to follow the trend. Perceived as a threat by some companies, the digital transformation may also be an opportunity to re-invent, invest in new projects and take advantage of the new trends.

A recent Harvard Business Review ’s survey stated that companies are convinced of the importance to start a transformation by 2020. In its 2017-2020 plan, BNP Paribas announced the acceleration of its digital transformation.

How to face this challenge? What are the main steps and what to expect exactly?

PART 1 –  Digital transformation as a marketing and sales lever

The digital transformation quickly changed the competitive landscape in many industries. All the companies had to adjust their product development as well as marketing strategies in order to leverage opportunities offered by the digital trend.

Enlarge the scope: new audiences, new products

The digital age transformed our relationship to time, freedom, leisure as well as our consumption habits (unlimited access to music or movies, SaaS solutions, online banks, new transportation services, mobile applications). Whether it is to win back lost market shares or target a new audience, to enlarge an existing offer or improve a service level, the digital trend is an opportunity to innovate and remain competitive.

Those innovations are possible thanks to the analysis of usages, new habits of each audience segment and through the observation of other sectors to get inspired. Key elements are crucial to consider when creating or adapting an offer: think mobile, be customer focused (in terms of added value and features), do not forget the basics of marketing mix that are product, price, promotion, packaging, as well as payment that is taking on a more important role in the customer journey.

Accelerate profitability: how to launch an offer efficiently

The digital is also a good way to launch new offers and projects quickly for a limited cost. Beyond online promotion that allows high visibility for a minimum of budget, each step of the launch can now be managed online: customer acquisition, subscription step, sales channels, etc. Thanks to the cloud technology and SaaS solutions, it is now possible to create a 100% digital customer journey. Traditional process is now replaced by more efficient methods which is a clear opportunity for all types of companies.

Subscription: a viable business model

Already well known in the press sector, subscription and pay-as-you-go models developed a lot over the past few years, especially in the digital services industry. Benefits for consumers are obvious (freedom, budget management…), but also are benefits for companies (predictability of recurring revenue, revenue growth) : this reinforces viability of this model that attracts a lot of start-ups. Thus, many sectors are entering subscription commerce to sell their offer.

Maximize customer relationship

Big data is a revolution in terms of customer knowledge. Thanks to data collection, it is now possible to understand customer habits, journey and preferences. This customer-centric approach allows to customize offers and generates new types of interactions between brands and consumers. Social networks are also a new communication channel, in which consumers express themselves freely and this can be used as a source of inspiration for companies.

Digitalization opens up new paths for a customer experience that can be improved. But it is also creating new challenges such as subscribers’ management, customers’ app experiences, payment management … It must be handled cleverly!

Read the 2nd part An agile answer for a successful transformation