Order-to-Cash Cost Reduction

The Problem

Orders were entered and billed manually with inconsistent data quality, producing a steady stream of billing disputes. Collections followed no consistent cadence, and days sales outstanding (DSO) had drifted upward over several quarters without a clear owner accountable for bringing it back down.

The Benchmark

Benchmark operations of similar size and industry run at a materially lower DSO and a lower cost-to-collect per invoice dollar than what this business was reporting.

The Gap

The gap between actual and benchmark DSO represented cash tied up in receivables that could otherwise fund operations, and the elevated cost-to-collect represented direct, recurring operating cost above what comparable teams spend.

The Initiative

Standardize the order-to-cash workflow from order entry through collections, automate billing accuracy checks before invoices go out, and introduce a structured, risk-based collections cadence.

The Plan

Segment the receivables book by risk and size, fix the highest-impact billing-accuracy issues first, introduce the new collections cadence for the highest-value accounts, then extend it across the full book.

The Expected Result

DSO reduced toward benchmark levels and cost-to-collect brought in line with comparable order-to-cash operations, freeing up working capital without adding headcount.

Measure and Stabilize

DSO, cost-to-collect, and billing dispute rate are tracked monthly against the benchmark target to confirm the improvement is holding and not reverting once attention moves elsewhere.