Order-to-cash: Invoice optimization

Project overview and objectives

After the energy business unit of a multi-national conglomerate went live with a new ERP system, its first order of business was to focus on optimizing the system. Leadership then engaged Clearsulting to assess the order-to-cash process and implement the prioritized initiatives.

Goals of this project were to:

• Streamline the invoicing process
• Improve the customer experience
• Reduce invoicing, supply chain and collection costs

What we did

Phase 1: Assessment

• Conducted sessions with key stakeholders to identify current state pain points around systems and enablers and process challenges
• Performed root cause analysis to identify the underlying problems across order-to-cash
• Developed six priority recommendations, including a transformation roadmap to demonstrate how the savings could be yielded
• Identified $4M in order-to-cash savings and around $5M in supply chain and logistics savings

Phase 2: Implementation

• Worked with leadership to prioritize the recommendations from the assessment,
• Implemented our one invoice per sales order recommendation, reducing the number of invoices by 175,00 and equating to $3.5M in savings
• Coordinated with leadership on aligning the business’s logistics function with the invoicing process to enable an additional $5M in savings