The order-to-cash process
Follow best practice and you’ll benefit at every stage of the order-to-cash process
Large numbers of documents are required for the order-to-cash process to function effectively, including purchase orders, invoices, delivery notes or, as they are commonly called, Advanced Shipping Notices (ASNs).
In a competitive economy, you cannot operate efficiently if you use manual, paper based processes for handling these documents. For example, many leading retailers will not even purchase products from suppliers if they cannot communicate electronically with them.
There’s a crucial need for a fast, accurate, efficient and cost-effective solution, no matter what size you are or what sector you operate in. Electronic Data Interchange (EDI) provides that solution.
EDI is essentially the exchange of standard electronic business documents between two companies by computer. It replaces paper based documents with electronic ones. The sending company creates the electronic message and the receiving company interprets it, without the need for any human involvement. Any business can use EDI and take advantage of its speed, accuracy, efficiency and cost savings.
The diagram below shows the complete process, and how EDI messages are used at each stage.