Why you should automate this three Processes in 2021
Updated: Dec 21, 2021
The global crisis brought on by the coronavirus pandemic has accelerated the shift into a digital world, and has changed the business ecosystem. People are undergoing novel and more frequent online experiences, either as students, workers, or consumers. Employers are discovering convenient modes of conducting business without any disruption. Most typical business processes in any organization stand to gain tidily with the building up of automation capability. This assumes prominence in the midst of COVID 19 pandemic, where ‘least-contact’ exchange of products and delivery of services become need of the hour.
Here are the three processes you need to automate in 2021, as digital transformation is the way forward.
1) Quote to Cash Process (QTC)
In any manufacturing, service industry or government organization, procurement of materials and services is an important activity. There are two parties to the process, i.e., the seller or supplier and the buyer or customer. Distinct sets of activities are involved in the whole process of procurement. The process of QTC flows in two segments, namely Quote- to- Order (QTO) and Order- to- Cash (OTC). The QTC process starts when the concerned person in an organization determines the need for a specific product or service. The process closes when the product or service has been delivered and payments made.
The Quote-to-Order (QTO) commences when the buyer makes a request for a quote (RFQ) for the supply of certain products or services with specifications and quantity from the prospective vendors. The vendors quote their price for the same. The buyer evaluates the quotations received from various vendors on technical, financial parameters with associated terms and conditions like warranty issues, delivery schedule, delivery location, maintenance obligations (in case of services) etc. Then the buyer decides on placing the order to the successful bidder (vendor). This completes the QTO stage, followed by OTC process.
The Order- to- Cash (OTC) process encompasses activities related to purchase order verification, shipment, delivery, invoicing, product check for quantity and quality, release of payment, receipt corresponding to payment and acknowledgement. The above combination of processes involves both the buyer and supplier with a flurry of activities at both ends and automation of workflow confers numerous advantages to both the parties. Few examples of the QTC process are: procurement of machineries including their installation and maintenance in manufacturing units, purchase or up gradation of computer hardware and software, operation and maintenance contract in IT companies etc.
The Procure-to-Pay (PTP) is also a type of process, which is somewhat synonymous to QTC. PTP includes activities such as determining needs of goods or services, obtaining quotes or bids, approving the purchase, selecting a supplier, issuing a purchase order, receiving the goods or consuming the services and paying the invoice.
2) Issue-to-Resolution Process (ITR)
When certain defects are noticed in a product or deficiencies are encountered in a service, the customer raises the issue in form of a complaint before the supplier. The supplier attends to the rectification of the defect or setting right the deficiencies in service. This process of resolution continues until the complaint is settled to the complete satisfaction of the customer or preferably when both the buyer and the supplier agree that the issue has been resolved. The process connected with the enquiry, assessment, and settlement of claim relating to an insurance policy of the policy holder or his nominee by the insurance company is a typical example of issue-to-resolution or claim-to-resolution. Any dispute connected with the claim like the amount involved, legality of claim etc get settled in this process.
3) Application-to-Approval Process (ATA):
A common process applicable to most Government organizations, application-to-approval process represents a functional relation between an applicant and the agency to which the application is made. Request from a builder for sanction of a building permit by the Corporation or Municipal town agency, approval of industry license by a industrial licensing authority are examples for this process. Submission of application by a student for admission to a course in a College/University is another example. Here the process ends when the application is considered and either approved or rejected.
ATA process is also an expression of a relation between an employee and his employer in organizations. This process gets initiated when an application form is submitted by the individual employee for the grant of certain benefit or privilege by the employer. The request is examined with reference to the individual’s entitlement as per rules and is approved, partially sanctioned or rejected. Examples include request for sanction of leave, loans, promotion etc. by the employees.