The Order-to-Cash (O2C) value stream represents the end-to-end set of business activities that convert customer demand into delivered products and recognized revenue. It spans customer engagement, order capture, pricing and credit validation, fulfillment, shipment, invoicing, payment collection, and ongoing customer service. As a core enterprise value stream, O2C integrates processes across sales, customer management, logistics, warehouse operations, financial accounting, and customer support to ensure a seamless, accurate, and value-generating customer experience.
O2C is critical to the enterprise because it governs how revenue is created, how product promises are fulfilled, and how relationships with customers are maintained post-sale. The value stream orchestrates capabilities from multiple domains—including customer management, pricing, financial risk assessment, logistics execution, and billing—into a coherent workflow that ensures operational efficiency, regulatory compliance, and customer satisfaction.
Strategic Purpose:
The purpose of the O2C value stream is to:
Enable frictionless revenue generation
Ensure accurate and profitable order execution
Provide operational transparency from inquiry to delivery
Maintain financial discipline through pricing, taxation, and credit validation
Strengthen long-term customer relationships through effective service and communication
O2C is a primary source of business value creation, tying together commercial strategy, operational execution, and financial results.