How quickly does an order booked by a customer gets translated into cash?
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How quickly does an order booked by a customer gets translated into cash?

Hanoch Mario Tauro Hanoch Mario Tauro

Hanoch Mario Tauro

Sales Compensation Business Operations | Customer Success | Business Process Transformation

发布日期: 2017年2月12日
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Quote to Cash Cycle(QTC/Q2C)/Order to Cash Cycle (OTC/O2C)

The chain of events starting from customer placing the order, seller organization fulfilling the order and most importantly receiving payments for the orders forms the ‘Quote to Cash cycle’. The importance of understanding the cycle lies in the fact that it helps determine - ‘how quickly an order booked by a customer gets translated into cash’ and hence forms the financial backbone for majority of the product-based organizations.

Process flow in a typical ‘Quote to Cash Cycle’:

Key pressures in Q2C:

  • Cost pressures
  • Risk of customer defaulting
  • Inability to accurately forecast the cash flows


Key Objectives in Q2C:

  • Reduce no of days Sales Outstanding
  • Improve cash flow forecasting
  • Improve process efficiency
  • Improve customer experience
  • Manage credit risk and losses from bad debt
  • Automation though use of appropriate Technology

Thus the focus on having a robust ‘Quote-to-Cash Cycle’ is ever so imperative for product based organizations.   





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