Where are the sticking points?
The main weakness of Order-to-Cash lies in its dependence on human intervention. On average, 5 to 7 employees are involved in each cycle¹. One incorrect entry, one missing validation or one forgotten reminder can slow down the entire chain.
A few concrete examples illustrate this fragility:
- Orders with pricing errors or customer inconsistencies
- Delayed invoicing due to lack of validation or automation
- Logistics tracking poorly synchronised with management tools
- Manual or incomplete bank reconciliation
- Generic customer reminders, often managed via Excel
Beyond delays, these slowdowns undermine both financial visibility and the quality of commercial relationships, regardless of the sector of activity.
Is team availability the crux of the problem?
In France, the average payment delay is 13 days², often caused by disputes or pending validations.
In a context of reduced or heavily stretched teams, any friction can cause several days of delay. Holidays, non-working days, internal emergencies: these are all variables that slow down the collection of invoices, which should be as short as possible to support the company’s cash flow needs.
In addition to internal efficiency, there are also actions expected on the customer side: validation of a payment order, execution of a payment, clarification of the purpose of the payment, etc. Here again, the human factor is decisive and rarely predictable, introducing significant uncertainty into the order-to-cash cycle.
Why is payment central to this cycle?
Payment, often considered the end of the process, is in fact the start of a series of actions: notifying the production team upon receipt of a deposit, issuing alerts in the event of non-payment, updating data in the ERP system upon receipt, etc.
In this sense, payments and their processing are not the end of the cycle, but a central trigger that requires a level of responsiveness that humans can hardly guarantee entirely.
What levers can be used to improve order-to-cash in the long term?
Optimising order-to-cash is not simply a matter of speeding up the collection cycle, but of streamlining all the actions that structure it.
Better customer service
Payment is based on a voluntary action by the customer, often influenced by the quality of their experience and the means at their disposal. It is therefore necessary to reduce obstacles such as delays, lack of clarity and lack of options.
To achieve this, several levers can be activated:
- A variety of payment methods tailored to B2B (bank transfer, direct debit, card, Pay by Bank)
- Payment facilities or instalment plans (financing, BNPL, ApplePay/GooglePay, etc.)
- An online portal allowing customers to view their balance, invoices and due dates, and to update their bank details if necessary
These services have a direct impact on the speed of cash collection/debt recovery and a reduction in DSO.
Focusing efforts on the essentials
Process automation halves the time spent by accounting teams and reduces DSO by 30% on average³. Advanced automation solutions also incorporate alert or prediction mechanisms that can identify likely delays or recommend targeted reminders.
But as EY summarises in its report on financial digitalisation⁴, automation alone is not enough to optimise the O2C cycle: a truly collaborative approach between departments and systems must be initiated.
Adapting to regulatory challenges
Starting in September 2026, the electronic invoicing reform will require French companies to submit their transaction data to the authorities via e-reporting. This requirement is conditional on the order-to-cash cycle being completed correctly: the invoice must be issued, paid and reconciled.
In the event of a delay or inconsistency, the company risks a fine of up to €250 per breach, with a maximum of €15,000 per year.
Gaining control over the O2C cycle is therefore no longer just a performance lever, but a compliance requirement. For example, Italian companies, which began the transition to mandatory e-reporting in 2015, have seen many structural benefits, particularly in terms of available cash flow and operational efficiency.
Payments and their processing are not the end of the cycle, but a central trigger that requires a level of responsiveness that humans can hardly guarantee entirely – Victor Derrier
Why is the transformation still slow?
Several obstacles remain to the modernisation of the O2C cycle. The first is legacy applications. Legacy systems have limited real-time interoperability. Data flows in batches, synchronisation is slow, and any change requires a separate project.
Secondly, the O2C cycle is cross-functional, but without a clear owner. Between the finance department, the IT department and the sales department, no one is really driving the transformation. Without governance, there is no budget and no roadmap.
Added to this is an internal culture that is resistant to change. The ‘we’ve always done it this way’ mentality remains strong, even if it means ignoring the unmeasured cost of organisational errors. The ROI is therefore unclear and difficult to justify.
Towards data-driven O2C?
The future of order-to-cash will be shaped by automation, synchronisation and user experience. Systems will need to communicate with each other, events will trigger actions, and customers will benefit from complete transparency regarding their situation.
With the widespread adoption of e-reporting, the importance of a structured and efficient O2C cycle is accelerating. Each step of the process becomes actionable data in real time, enabling better cash flow management, resource optimisation and a frictionless customer experience.
Are you exploring this topic? Our teams will support you in transforming your order-to-cash cycle.
¹ Étude interne (2025)
² Altares, « Retards de paiement des entreprises en France » (2024)
³ Emagia, « Surmonter les défis de l’automatisation de la commande à l’encaissement » (2024)
⁴ EY, « Why tech transformations need to be more human » (2023)
