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Suppliers with extensive customer relationships play an essential role in the global economy. They form part of a complex supply chain, and as such, they are constantly looking for ways to improve their order-to-cash (O2C) cycle and better serve their customers. Fortunately, there are now a host of digital tools available that allow suppliers to streamline processes, reduce costs and increase efficiency. This post will look at five B2B digital tools that can help suppliers improve their O2C processes and better serve customers.

The customer is king

When it comes to growing your business, the customer is always king. This means that, as a supplier, you must do everything in your power to ensure that your customers are happy with your products and services. In short, you must serve your customers better.

There are several ways to go about serving your customers better, but one of the most effective is using digital tools. By using digital tools, you can automate many of the tasks associated with O2C processes, making virtually every activity more efficient and ensuring that your customers always receive exactly what they ordered on time.

In addition, digital tools can also help you keep track of your customer data, allowing you to anticipate their needs and preferences better. This information can then be used to improve your organization’s customer service efforts and ensure that you’re always providing them with the best possible experience.

The 5 digital tools suppliers can use now

1. Accounts Receivable Automation

In Receivable Savvy’s 2021 Perceptions Analytics e-Invoicing Study and the upcoming AR Automation Study, the most significant benefits associated with using automation software are getting paid more predictably, easy creation and submission of invoices, and confirmation that the customer has received the invoice. Automation solutions can help businesses improve their O2C cycles and customer relationships.

There are many benefits of automating AR processes, whether using an electronic invoicing solution, such as Tungsten Network, an AR automation solution, such as HighRadius, or ERP software, such as NetSuite. Those benefits include:

• Reduced Days Sales Outstanding (DSO): Automating AR can help businesses reduce DSO by streamlining the invoicing and collections process.
  Improved Customer Service: Automating AR processes can help businesses improve service by providing customers with real-time visibility into their account status and giving them the ability to make online payments.
  Increased Efficiency: Automation can also help businesses improve efficiency by reducing the need for manual data entry and paper-based processes.
  Reduced Costs: AR automation helps businesses reduce costs by removing steps from the process, thereby reducing the costs associated with those steps.

2. Customer Portals

Customer portals provide a central location for customers to access information about their accounts, view invoices and make payments. Portals can also be used to submit support requests and track the status of open issues.

Customer portals can be customized to match the branding of your business and integrated with your existing website. Some customer portal solutions offer additional features, such as managing documents, contracts, and projects.

3. Advanced Analytics

Analytics provide suppliers with greater data collection and analysis capability, leading to better products and services for valued customers.

• Advanced analytics can help suppliers identify process inefficiencies and optimize their O2C operations.
• Automated data collection and analysis can provide real-time visibility into customer buying patterns, helping suppliers anticipate customer needs and proactively address potential problems.
• Online portals and self-service applications can give customers 24/7 access to account information and allow them to place orders, track shipments, and make payments online, thereby reducing the administrative burden on both sides.
• Mobile apps can enable field sales reps and customer service representatives to access critical information while on the go, improving responsiveness and providing a better customer experience.
• Integrated systems can streamline O2C processes by automating manual tasks, reducing data entry errors, and providing real-time visibility into all aspects of the operation – all from a centralized location.

4. Robotic Process Automation

Robotic process automation (RPA) can be used to automate repetitive, rules-based tasks that are currently carried out by staff. Incorporating RPA can free employees to focus on more value-added activities while improving accuracy and consistency.

RPA can be used in several different ways within the order-to-cash process. For example, it can automatically extract data from invoice images, populate fields in an order management system, trigger approvals based on predefined rules, and generate customer invoices.

Additionally, RPA can be used to monitor customer accounts for payments and flag any late payments. This information can then be passed on to the collections team so that they can follow up with the customer accordingly.

Overall, RPA can help to improve efficiency and reduce errors throughout the entire O2C process.

5. Cloud Computing

Cloud computing is the on-demand, internet-based computing capability designed to leverage data storage and computing power without direct or active management of the user. It’s a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services). Cloud computing involves sharing resources to achieve economies of scale, like a utility (i.e., an electricity grid) over an enterprise IT infrastructure.

Cloud computing has been growing in popularity for over 20 years as businesses seek to take more significant advantage of the Internet, reduce costs, increase agility, and maximize flexibility. The use of cloud-based solutions can help companies to improve their order-to-cash processes by automating tasks, providing real-time visibility into data, and reducing the need for manual intervention.

Cloud computing can be a vital component of several tools already mentioned in this post, including AR automation, ERP software, customer portals, advanced analytics, and more. In short, whatever work can be done and housed on the cloud should be strongly considered.

There are many benefits as well as factors to consider with cloud-based solutions, such as:

• Ease of use: The solution should be easy and require minimal training.
• Functionality: The solution should have the features and functionality you need to improve your order-to-cash process.
• Scalability: The solution should be able to scale up or down as needed to meet changing demands.
• Reliability: The solution should be reliable and offer uptime guarantees.

The five digital tools mentioned in this post are a great way for suppliers to ensure that orders are fulfilled on time, and customer service is priority number one. By utilizing the right technology, businesses can quickly identify operational inefficiencies, optimize delivery processes, and improve overall customer satisfaction – all of which will help them stay ahead of the competition. With these tools, suppliers can successfully maintain a competitive edge both now and in the future.

Ernie Martin is Founder and Managing Director of Receivable Savvy. He brings over 25 years of experience in financial supply chain management, marketing and communications and draws upon his extensive experience to share knowledge and best practices with AR professionals. He previously chaired the Vendor Forum of the Federal Reserve Bank of Minneapolis and his resume includes time at several well-known brands and companies such as Tungsten Network, Delta Airlines, CIGNA Healthcare and Georgia Pacific as well as a number of years as an independent consultant.