Quote to cash is the process of converting a quote to an order, fulfilling that order and collecting cash. It is a key business process that brings in money into the organization. Order to cash analytics is understanding how long each stage take in the process and where the bottlenecks are .

Order to cash analytics is the analysis, at an aggregate level with drill down to each line item, of the following stages:

• Generating a quote
• Getting an order
• Fulfilling that order
• Shipping that order
• Invoicing that order
• Collecting cash/cheque
• Revenue recognization

Of course there are multiple mini-steps for each of the above points that but it is safe to assume that if the aggregate is working fine then the sub-steps are fine as well.

Quote to cash matter to the revenue operations function because:

• A person can sell all they can but will the company deliver on the promised timelines? The inability to meet timelines is the key reason for dissatisfied customers.
• Quote to cash is not one and done because the timelines change daily and consequently the ability for the sales rep to set up promise dates
• Understand the status of the order - one of the largest time sinks for a sales rep.
• Do you really want the sales rep to sell more if the customer has not paid for past orders?

Quote to cash analytics matter to other functions because:

• Quote to cash analytics enable us to understand how efficient the business
• Where the bottle necks are and what needs attention within the business.
• Directly impacts cashflow - the lower the number of days to convert an order to cash the less working capital is required. Amazon is a great example. In fact have negative order to cash. Amazon charges a credit card at the time an order is placed! There is a direct correlation between the number of days it take generate cash from the order and the valuation of the company.