7 Signs You Have Quote To Cash (QTC) Problem

Quote to Cash challenges and requirements vary significantly from business to business. Often Quote to Cash problems are linked to one of more of the sub processes such as CPQ or sales order processing that are closer to the start of the QTC process. What might seem like a cause in billing might actually by a symptom of a problems further up the process in CPQ, order management or contracting.

Here some Common signs you have problems somewhere along the Quote To Cash process:

  • 1

    Poor Sales Pipeline and Forecast Accuracy

    Silos between ERPs and CRMs means manual processes and disconnect in visibility between opportunity and order. Disconnects and challenges between ordering and delivery means difference between financial forecasts and actual forecasts.

  • 2

    Difference and Low Win Rate and Statistics

    Do you even have the analytics to support this view and drill down into it  – i.e. by offer, sales person, etc.

    Is the issue number of quotes requested, produced or the win rate?

    Do you track the time to quote/ propose?

  • 3

    Order Accuracy & Efficiency

    What percent of orders have an issues and how long does it take to deliver and be in a position to invoice?

    Is order efficiency impact by elements outside of the order process such as professional service resource or stock?

  • 4

    Delivery Performance

    What percent of orders are correctly delivered as proposed and on time?

    Is there any issues between different categories of offerings i.e. transactional delivery, professional services as well as support.

  • 5

    Contract Disputes

    Customer complaints and disputes need to be investigated and tracked to understand where the source issues lies. Is it because delivery has failed to deliver on what was promised or sales over promising or the contract/communications with the customer?

  • 6

    Lower Profit Margins

    Config, price quote, contracting and sales order management are the governance mechanisms of your quoted profit margins. If actuals are lower than forecast or budget, what is the reason? End of month reconciliations are a huge manual task.

  • 7

    Increasing Aged Debt

    Are customers paying their bills on time or is aged debt increasing?

    What is the reason for any change and which part of the QTC process does it relate to?

QTC can have many KPIs and Metrics but these are key ones. If you don’t have the visibility or control of your performances across these KPIs then you could have a problem with your QTC process.

We offer no-obligation consultations  to help you identify the right approach to transforming your Quote to Cash operations. To find out more or to book a consultation, please call +44 (0)1962 835053, email enquiries@processflows.co.uk, or fill in the form below.

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