Visibility into KPIs for Status of Orders, Invoices and Remittance Docs Is Key to Reducing Your Days Sales Outstanding and Days Payables Outstanding.
As both Operators and Service Companies focus on better management of KPIs associated with the common goal of reductions in their respective Days Payables Outstanding (DPO) and Days Sales Outstanding (DSO), one key factor that would drive further DSO / DPO reduction is often missing. That factor is “Shared Visibility”, and it is missing on many P2P / Order to Cash initiatives.
Taken in isolation, many Suppliers and Operators have their own internal systems and dashboards, but how many give their trading partners access to such status information? Without joint sharing of such KPI information on a real-time basis we cannot eliminate the process inefficiencies associated with chasing status updates that require a huge degree of human intervention through telephone calls and numerous follow up emails.
In order to be effective in both improving the visibility and in eliminating the costs associated with these ineffective and time- consuming processes, it is essential that Operators and Service Companies alike give their respective trading partners visibility into both document status and document processing times. Without the visibility of such KPIs it is very hard to improve on the performance for these key trading metrics.
The Actian Business Xchange™ KPI Dashboard helps Operators and Suppliers to openly share document status updates and associated KPIs in an extremely efficient manner to CFOs, AP Managers, AP Personnel, AR Personnel and Account Managers.
This results in:
- A more effective joint approach to DSO and DPO reduction
- More cost-effective document status/lookup tracking
- Ability to quickly recognize and action DSO/DPO KPI trends
- DSO/DPO visibility by individual/multiple trading partner
- Visibility into DSO/DPO against terms of business agreed
- Full drilldown to individual order/invoice/remittance
- KPIs for document approval timescales
- Automated KPI email reports to internal staff and associated trading partner representatives
The net result from such “Shared Visibility” is better overall management of the P2P/order-to-cash aspects of the trading relationship brought about by transparency, cost reduction, associated DSO/ DPO reduction, and overall improvement in the Operator/Supplier relationship.