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Order to cash final
- 1. Order to Cash Dominic Telaro Director, Industry Solutions, I.B.I.S., Inc. Russ Goble Solutions Architect, I.B.I.S., Inc. February 12, 2013
- 2. Industrial Distribution Trends & Challenges Market Trends • • • • • More Demanding Customers Increased Competition Greater Complexity of Supply Chain Consolidation Pressure from Amazon Supply Operational Business Challenges • Demand, Pricing and Margins • Increase Operational Efficiency • Delivering Real-time, Actionable Information to Employees, Suppliers and Customers • Building Brand Loyalty and Customer Satisfaction • Aging Work Force • Labor Intensive Business 2
- 4. Order to Cash Informal Formal supported by manual processes Inefficient Ineffective resource intensive not cost effective not user friendly lack of readily available information as per the office manual
- 5. Order to Cash Order Entry Approve Pick Margins not Realized Invoice Ship
- 6. Order to Cash Order Entry Promo Pricing SPA Approve Pick Customer Payment Invoice Ship Vendor Invoice • Charge Back • SPA • Cost Deviation • Rebates • Collection Margins Realized
- 7. Order to Cash Margin realization is almost a misnomer in the Distribution industry! Processes are weak at best Processes are manual with the assistance of Excel Best of Breed is clear but not applicable
- 8. Order to Cash Margin Realization Use a Best of Breed process Include all pricing information at O/E process Must be automated Must be Auditable and Traceable Must be agile/fast Must be trustworthy!
Notes de l'éditeur
- SPEAKER NOTES ONLY:Increased competitionCompetition for the customers’ business is increasing as overseas and direct-to-consumer retailers enter the market. To remain competitive and protect margins, distributors need to differentiate themselves with value added services that positively position them against the competition and insulate them from pressures to lower price. Complex supply chain operationsdistributors need accurate forecasting and demand planning to ensure they are purchasing and stocking the correct quantities across their mix of products. To minimize inventory levels, increase inventory turns and reduce waste, distributors need systems that provide easy, real-time visibility into inventory, sales, purchasing, and financial information across multiple locations. In addition, they need to do more with less and become more efficient in day-to-day operations in order to reduce overhead. They need to be able to deliver orders quicker with better quality, while managing larger volumes of supply – all with fewer people.More qualitative transactional information provides distributors with the insight they need into supplier performance and reliability and allows them to improve relationships and commercial agreements with preferred suppliers.More demanding customersCustomers demand lower prices and additional services specific to their needs at low or no additional cost. In addition, customers needs and price sensitivity can vary greatly by segment. Only a 360° view of their customer’s business gives distributors the insight they need to provide the correct service levels and customer specific pricing that keep customers satisfied and coming back. Finally, to compete effectively and maximize business opportunities, distributors need to manage multiple channels to market such as dealers, stores, online ordering, and sometimes, direct-to-consumer transactional environments.Optional Additions: Evolving Business ModelAdvancing TechnologySAMPLES: Operations Business ChallengesHigh Overhead - such as employee expenses associated with order fulfillmentDiminishing Margins – such as pressures to discount to win businessMerger & Acquisition Alignment – such as changing needs of the business such as respond to new competitors, M&A, or overseas expansionLack of Insight – such as insight into business operations due to delays in information reportingFragmented IT – such as M&A activity that causes fragmented IT environments where applications don’t speak to each otherExcess Inventory – such as inaccurate forecasts that lead to inventory excesses or stock outs