The Order-to-Cash (OTC) process is a critical part of any business that involves selling goods or services. It refers to the entire process of receiving and processing customer orders, fulfilling those orders, and collecting payment from customers. Measuring and analyzing OTC metrics is an essential part of managing a business's cash flow, inventory levels, and customer satisfaction.
A comprehensive list of OTC metrics includes those related to orders, inventory, revenue and collections, cash receipts, and more. These metrics provide insights into the performance of the OTC process, highlighting areas of strength and weakness that can be addressed to improve overall efficiency and profitability.
Orders
% Orders cancelled: This metric represents the percentage of orders that are cancelled by customers or the company. This metric is important for identifying reasons for order cancellations and implementing strategies to reduce cancellations.
Open Orders by Customers, Salespersons, Product: This metric tracks the number of open orders by customers, salespersons, and product. By monitoring this metric, businesses can identify which products are in high demand and which customers and salespersons are generating the most sales.
Order Flow Summary: This metric provides a high-level overview of the order processing workflow, including the number of orders received, processed, shipped, and delivered. This metric is useful for identifying bottlenecks and delays in the order processing workflow.
Customer Order Cycle Time: This metric measures the time it takes for an order to be fulfilled from the time it is placed by the customer. This metric is important for identifying areas where the order processing workflow can be optimized to reduce cycle time.
Shipping Status: This metric tracks the status of orders that have been shipped, including whether they have been delivered, are in transit, or are delayed. This metric is useful for monitoring delivery performance and identifying areas where improvements can be made.
Order Holds by Source, Customers, and Reasons: This metric tracks the number of orders that have been put on hold by source (e.g., customer, salesperson), customer, and reason (e.g., out of stock, payment issues). This metric is useful for identifying common reasons for order holds and implementing strategies to reduce them.
Return Customers, Product, and Reasons: This metric tracks the number of returns by customer, product, and reason (e.g., defective product, wrong size). This metric is important for identifying areas where product quality can be improved and for implementing strategies to reduce returns.
Revenue and Collections
Revenue by Company, Sales Channel and Customer: This metric tracks revenue generated by company, sales channel, and customer. By monitoring this metric, businesses can identify which sales channels and customers are generating the most revenue.
Top 10 Customers and Products by Revenue: This metric identifies the top 10 customers and products generating the most revenue. By monitoring this metric, businesses can identify which customers and products are most important to their revenue stream.
Bottom 10 Products by Revenue: This metric identifies the bottom 10 products generating the least revenue. By monitoring this metric, businesses can identify which products may need to be discontinued or receive additional marketing efforts.
Collections % Overdue, % Due: This metric tracks the percentage of collections that are overdue and the percentage that are due. By monitoring this metric, businesses can identify which customers are falling behind on payments and take action to collect overdue payments.
Payments Due and Overdue: This metric tracks the amount of payments due and overdue. By monitoring this metric, businesses can identify their current cash position and take action to collect overdue payments.
Top 10 Customers and Collectors by Overdue balance: This metric identifies the top 10 customers and collectors with the highest overdue balance. By monitoring this metric, businesses can prioritize collection efforts and identify potential issues with specific customers or collectors.
Cash Receipts
Total Cash Receipt Amount: This metric represents the total amount of cash receipts received by the business during a specified period of time. It includes all payments received from customers, including payments made by cash, check, credit card, and other forms of payment.
% Applied and % Reversed: This metric tracks the percentage of cash receipts that have been applied to customer accounts and the percentage that have been reversed. The percentage applied represents the amount of cash receipts that have been applied to outstanding customer invoices, while the percentage reversed represents the amount of cash receipts that have been reversed due to errors or other issues.
Cash Receipts by Customer Class and Bank Account: This metric tracks cash receipts received by customer class and bank account. By monitoring this metric, businesses can identify which customer classes and bank accounts are generating the most cash receipts.
Receipt Details: This metric provides detailed information about each cash receipt received by the business, including the date received, the customer making the payment, the amount paid, the payment method, and any other relevant information. By analyzing receipt details, businesses can identify trends in cash receipts, such as which customers tend to pay on time and which payment methods are most popular.
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