Order-to-cash and credit management within automotive

Order-to-cash and credit management within automotive

So much is changing in the automotive world. Electric cars, autonomous driving and a greater connection between cars, systems and drivers are impacting the entire automotive sector. Changes in mobility behaviour, digitisation and more personalised customer communication are all playing an increasingly important role in the automotive sector. It is no longer just about functional cars, but comfortable cars. The customer of today prefers convenience and excellent service. Customer loyalty can no longer be guaranteed as markets are becoming increasingly saturated with quality vehicles. These developments challenge organisations to remain distinctive and at the same time reduce costs, increase efficiency and put the customer first. So how do you ensure that customers (continue to) choose you as their automotive supplier? And how do you gain and maintain control of your customers' payment performance to protect your cash flow? To stand out as a company, you need to provide excellent service and build long-term customer relationships. This also helps ensure that your invoices are paid sooner.

Personal communication for a better payment behavior

The transformation within the automotive sector is compelling the industry to review its processes, especially their financial processes. After all, altered mobility behaviour impacts risk, the customer structure and payments. It is important to have clear insights and collect data about creditworthiness, payment behaviour and the customer’s preferred method of communication. For example, one customer might prefer to receive his invoice via e-invoicing, text message or WhatsApp, while another prefers to receive it by e-mail or post. All this information helps you to segment customers; whether this is based on payment behaviour, communication channel or region. This allows for personalised communication as part of your service, involving your customer in your process and helping you to distinguish yourself as an organisation.

Process optimisation leads to higher cash flow and long-term customer relationships

It is therefore important to organise your order-to-cash process as well as possible with your customers as the central focus. As a result, you can best organise the associated automatic workflows and credit management strategies. If the invoice is paid on time, no action is required. If not, direct customer contact is needed to find out why a payment is delayed. Maybe the email address has changed, there is a wrong description in the invoice or there are payment problems. Approach the customer via the desired channel, register the complaint and the agreements made and ensure proper communication and handling. Customers appreciate your service and will usually try to pay the invoice quickly. This not only ensures a higher cash flow, but also builds a sustainable customer relationship.

Specialist software adds value

Our solutions
This is exactly where Onguard can add value. Our integrated platform offers solutions for every step of the order-to-cash process, from risk management, invoicing and payment processing, to dunning, collection procedures and, if necessary, the appointment of a bailiff. Each step leads seamlessly to the next. So, you always have an overview and know what actions you need to take that day to stay in touch with your customers and make a difference. Start with small steps, for instance your debt collection, and integrate with the other steps in the order-to-cash process when your organisation is ready. Onguard will guide you towards your success and digital transformation.

Our customers

Automotive Lunch Club, the Midlands area
March 2020
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