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Review the key drivers of performance below and consider how well these are addressed within your organisation.
Customer onboarding
- Know your customer
- Credit risk assessment
- Credit limits
- Payment terms
- Payment methods
- Ts&Cs acceptance
Order processing & fulfilment
- Order confirmations issued
- Credit limit & status check
- Incoterms
- Order hold process
- Prompt billing
- Management of un-billed revenue
Collections
- Tailored collection strategies
- Proactive collections management
- Use of AI & automation in collections
- Early identification of invoice disputes
- Prompt resolution of disputes
- Effective debt escalation protocols
- Application of late payment legislation
Payment receipt processing
- Receipt of remittance advice
- Speed and accuracy of cash posting & allocation
- Use of automation
- Ledger hygiene/low UA cash
- Collaboration between Collections and Cash Allocation teams
Order To Cash behaviours & culture
- Team communication rhythm
- Meaningful cash targets
- Hunger for results
- Incentives
- Engagement with Sale & Operations
- Quality data insights
- Performance monitoring and tracking
Vendor onboarding
- Know your vendor
- Vendor resilience
- Procurement management
- Payment terms
- Payment methods
- Ts&Cs acceptance
Purchase ordering
- PO policy
- PO compliance
- Requisitioning & order controls
Invoice processing
- Electronic invoice processing
- Automated 3-way match
- No PO no pay
- Goods receipting
- Approval workflows for exceptions and 2-way matches
- Rejection logging
- Management of GRNI
Supplier payment processing
- Frequency of payments
- Pay through date
- Emergency payments
- Control over early payments
- Duplicate payment controls
- Payment methods
- Payment clock
- Terms compliance/on-time payments
Procure to Pay behaviours & culture
- Team communication rhythm
- Engagement with Procurement & Operations
- Quality data insights
- Performance monitoring and tracking
Demand forecasting & planning
- Collaboration between Sales, Procurement and Ops
- Sales and Operations Planning (S&OP) process
- Seasonality
- Promotions
- Predictability of demand
- Production scheduling
Inventory management
- Make or Buy
- Inventory strategy (MTO or MTS)
- Inventory categories (e.g. Safety Stock, Cycle Stock etc.)
- Goods In performance
- Supplier performance
- MOQs and EOQs
- Lead times (manufacturing and replenish etc)
- Goods in transit
- Vendor Managed Inventory
- Returns processing
Fulfilment
- Incoterms
- Delivery lead times
- Quality control
- Packaging & freight
Forecast to Fulfil behaviours & culture
- Team communication rhythm
- Collaboration between Production and Supply Chain Management
- Collaboration with Sales & Procurement
- Quality data insights
- Performance monitoring and tracking