The Future of Order to Cash: How Close Are We to Full Automation?
Posted on 21 February 2025 by Blueringed Team
At Blueringed, we’re dedicated to helping businesses streamline their operations and unlock efficiency through innovative solutions. One area gaining significant attention is the Order to Cash (O2C) process—the vital workflow from order placement to payment collection. But how close are we to achieving full automation, and which industries are leading the way? Let’s dive into the current landscape and its implications for your business.
Where We Stand Today
The O2C process has seen remarkable progress, propelled by technologies like Robotic Process Automation (RPA), Artificial Intelligence (AI), and integrated Enterprise Resource Planning (ERP) systems. Tasks such as order entry, invoicing, and cash application are increasingly automated, with AI managing unstructured data and RPA handling repetitive processes with precision. Some organisations, like Siemens, have achieved over 90% “touchless” processing in specific workflows, leveraging generative AI for document handling.
Yet, full end-to-end automation remains out of reach. Integration challenges persist, as disparate systems—CRM, ERP, and payment gateways—often fail to connect seamlessly. Human oversight is still needed for exceptions, such as disputed invoices or complex credit decisions, despite AI’s advancing capabilities. As of 21 February 2025, leading firms are achieving 70-90% automation, but the final 10-30% depends on overcoming these obstacles. Experts suggest true 100% automation could be 5-10 years away, contingent on breakthroughs in system interoperability and AI autonomy.
Barriers to Overcome
Several factors complicate the path to full automation:
- Variability: O2C processes vary across industries and organisations, defying a universal solution.
- Cost: Advanced platforms, such as those from HighRadius or Billtrust, require significant investment—sometimes a challenge for smaller firms.
- Dynamic Conditions: Evolving regulations and customer expectations demand adaptive systems, an area where AI is improving but not yet fully independent.
Industries Leading the Way
Certain sectors are setting the pace, leveraging their scale and digital maturity to optimise O2C:
- Manufacturing: With complex supply chains and high order volumes, firms like Siemens use AI and ERP systems (e.g., SAP) to automate order fulfilment and invoicing, nearing full digitisation for routine transactions.
- Technology (SaaS): Subscription models drive automation in recurring billing and revenue recognition, with leaders like Salesforce and Oracle NetSuite excelling in digital-native workflows.
- Retail and E-commerce: Platforms like Shopify enable near-complete automation for standard orders, though returns and fraud detection still require human input.
- Financial Services: AI and blockchain enhance payment and collections processes, with tools like HighRadius reducing days sales outstanding (DSO).
- Wholesale Distribution: Bulk orders and pricing complexities benefit from ERP and AI-driven accuracy in fulfilment.
Your Next Steps
For businesses aiming to stay competitive, understanding the tools and trends shaping O2C automation is essential. Here are credible resources to explore:
- Forrester and Gartner offer detailed reports on O2C technologies.
- Billtrust and HighRadius provide case studies—like a 55% DSO reduction—demonstrating real-world impact.
- LinkedIn hosts thought leadership on RPA and AI applications in O2C.
- Automation Anywhere details RPA’s role in transforming finance workflows.
Partner with Blueringed
At Blueringed, we believe the future of O2C lies in bridging today’s gaps—integration, scalability, and adaptability. Whether you’re in manufacturing, retail, or beyond, our expertise can help you move closer to a fully automated process, optimising cash flow and efficiency. Contact us today to discover how we can support your journey.