The definition of order to cash
In a very simple way, order to cash (O2C) can be defined as the process of making a sale and then collecting the cash from this sale. In a logical sequence, the O2C process follows the sales process, and it is about managing an order after a deal, fulfilling the order, delivering the goods, invoicing the customer, and collecting money, when the invoice is due for payment.
If we use the 7 Rs that very often recur in supply chain management literature, we can say that O2C is the process of collecting orders, delivering the right product, to the right place (customer), with the right price, at the right time, in the right quantity, in the right quality (condition and packaging), ...
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