Global Chemical Manufacturer Saves $1.2M by Optimizing Order to Cash (OTC)
The effectiveness by which an organization is able to convert a product or service into money is the holy grail of success. Sales mean nothing without money in the bank.
A sluggish or complicated OTC process can result in lost revenue, lost customers, reputation damage, and even compliance issues.
Minit Process Moning was applied to a global company with more than $18 billion in annual revenue to help improve the end-to-end OTC cycle. By eliminating sales order changes, streamlining payments collections and identifying the hidden potential of standardization, our client was able to realize $1.2 million in savings.
Data Analysis Focus
- Baseline information, case duration influencers
- Impact of changes on the case duration, delivery, overview per customer, sales group, material group
- Credit management activities and impact on processes (case duration, delivery, customer, sales group, material group)
- Unusual cases: delivery before order
- Facilities globally 50+
- Annual revenue $18b
- Employees 35k
Return On Investment
minimized due to elimination of Sales Order changes; annual savings ~$390K
standardization unlocked and results; annual savings ~$325K
Opportunities for Payment Collections
streamlining defined; annual savings ~$350K; potential savings ~$490K
Lowering the risk of operational issues
due to 100% process transparency and Compliance; annual savings ~$2K