The Strategic Advantage Of Proactive NetSuite Maintenance for O2C Optimization

The Strategic Advantage Of Proactive NetSuite Maintenance for O2C Optimization

Key Takeaways

  • Adopt a Momentum of Business framework: Transition from viewing ERP maintenance as a reactive cost center to a proactive strategy for continuous improvement and alignment with business goals.

  • Distinguish system configuration from process optimization: Collaborate with NetSuite partners to ensure strategic enhancements align with business objectives, avoiding workarounds that limit scalability.

  • Measure broader financial and operational KPIs: Focus on metrics beyond faster invoicing, such as Days Sales Outstanding (DSO) and cash predictability, to enhance decision-making and reduce manual errors.

The Order-to-Cash (O2C) cycle can have several friction points. In the first part of our conversation with Aradhana Sahdev, NetSuite Architect in the SuitePaths practice at CloudPaths, we identified the four core friction points in this cycle. They include flawed handoffs and inconsistent data. In this final part of our interview with Sahdev, she gives insights into why the focus must shift toward a sustainable, long-term solution to avoid these issues.

According to Sahdev, a long-term solution is achieved through a structured approach to proactive system maintenance. Commonly referred to as Maintenance of Business (MoB), this practice is often misperceived as a reactive cost center or a necessary evil for keeping the lights on. “However, a strategic framework reframes MoB as a critical driver for continuous process optimization and business growth,” Sahdev says. “It’s the difference between treating your ERP as a static tool and cultivating it as a living business asset.”

The Importance of Proactive MOB

This stance moves far beyond simply fixing broken scripts or reports as they appear. The approach involves creating a foundation for ongoing improvement and ensuring the system evolves in lockstep with the business.

“Proactive maintenance of business is the foundation for continuous process optimization,” explains Sahdev. “This strategy involves analyzing system trends to identify recurring issues, diagnosing gaps in the initial configuration, and ensuring that the ERP remains aligned with business objectives as the company scales or diversifies.”

Sahdev adds that this methodology turns maintenance into a driver for growth, not just system support. “At CloudPaths, this concept is reframed as Momentum of Business, a disciplined framework for keeping the ERP aligned with the changing realities of the business,” she says.

Empowering the Organization

The benefits of a well-maintained NetSuite environment extend far beyond marginal gains in operational efficiency. The most significant outcomes are improved financial predictability and greater data accuracy, which empower leadership to make better strategic decisions.

“Beyond faster invoicing, the biggest wins that we’re seeing today are in the predictability of cash and financial accuracy,” Sahdev notes. “When the O2C cycle is truly optimized, finance teams gain real-time visibility into open accounts receivable, Days Sales Outstanding (DSO), and unbilled orders.”

Sahdev illustrates this with an example from LeafHome, a CloudPath’s SuitePaths client who believed their O2C cycle was performing well. “When we got on, they believed that their O2C process was fine because invoices were going out on time,” she recalls. However, a deeper analysis of the company’s NetSuite data revealed a different story. “We found that there were fulfillment delays and credit holds that were quietly inflating their DSO by over 10 days,” she says.

The solution involved targeted, strategic interventions within LeafHome’s existing NetSuite platform. “Our team restructured the whole approval workflows, automated the credit checks, and built real-time dashboards for AR aging and order exceptions,” Sahdev notes.

The results were swift and significant. “Within the first quarter, they experienced faster billing, had fewer order disputes, and a clear 15% improvement in the cash flow visibility of the business,” Sahdev concludes, “highlighting that optimizing the native capabilities that are already built into the ERP can turn a process into a high-performing strategic asset.”

What This Means for ERP Insiders

Adopt a Momentum of Business framework instead of a Maintenance of Business one. The most common mistake is treating NetSuite implementation as a one-time implementation rather than a living system. An effective strategy reframes maintenance as the momentum of business, which is a disciplined framework that keeps the ERP aligned with the changing realities of business. This approach, fostered by CloudPaths, prioritizes continuous improvement and strategic alignment over simply reacting to support tickets.

Distinguish system configuration from process optimization. Having an internal resource capable of basic NetSuite configuration is different from executing a strategic optimization plan. A go-it-alone approach often results in layering workarounds instead of building scalable solutions. This is because internal admins may lack a holistic view of cross-module dependencies. An effective partnership model with NetSuite partners like CloudPaths pairs functional and technical experts to align system design with business KPIs, ensuring every enhancement delivers measurable value.

Measure broader financial and operational KPIs. While faster invoicing is a valuable metric, a fully optimized O2C process delivers more profound benefits, including the predictability of cash and financial accuracy. Use NetSuite to monitor key performance indicators like Days Sales Outstanding (DSO) and open AR to quantify improvements. The goal is to reduce manual errors and provide leadership with accurate data for forecasting and strategic decision-making.