From Manufacturing Business Technology
Mike Morel, Senior Director of Marketing, SAP
Large enterprises need to increase the velocity and efficiency of their
order-to-cash cycle within their subsidiary network, which can each
reach a count in excess of 1,000 subsidiaries for Fortune 500 companies.
These subsidiaries include international and local sales
and distribution offices, small operating divisions, customer service
units, and joint ventures.
While most large manufacturing
enterprises have implemented ERP systems at corporate and larger
divisions/operations, a vast majority of subsidiaries in these companies
still use manual or legacy systems to manage their operations.
Every day that these organizations wait to streamline the order-to-cash
processes at their subsidiaries, they are bleeding cash that to the tune
of millions of dollars.
According to Aberdeen Group’s
2011 research, best-in-class corporations have 71% lower past due
accounts receivables (A/R) and payment time to clear the A/R ledger 80%
faster when compared to corporations that are not best-in-class (see
Figure 1). These organizations achieve best-in-class metrics by
automating major steps in their order-to-cash process at 2.9 times as
often as all others.
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