DIGITAL TRANSFORMATION OF THE ORDER-TO-CASH PROCESS THROUGH ERP–E-COMMERCE INTEGRATION AND QR-BASED PAYMENTS: A CASE STUDY OF TOO KAZPARTS

ABSTRACT

The article examines the impact of digital technologies on the optimization of the Order-to-Cash (O2C) process in a wholesale and retail distribution company. The study is based on the case of TOO KazParts, where 1C: Trade Management was integrated with an e-commerce platform and QR/payment-link instruments. The methodological basis combines a case-study approach, comparative analysis of key performance indicators, and elements of process-oriented evaluation. The empirical base includes ERP event logs, website order records, payment confirmation data, and expert assessment of operational changes during the period from June 2025 to early 2026. The results indicate a significant decrease in payment posting time, a substantial reduction in manual reconciliation operations, lower operational risk associated with cash circulation, and increased order-processing scalability. The study shows that a unified digital ecosystem can improve speed, control, and customer self-service in both B2B and B2C segments.

АННОТАЦИЯ

В статье исследуется влияние цифровых технологий на оптимизацию бизнес-процесса Order-to-Cash (O2C) в оптово-розничной дистрибьюторской компании. В качестве объекта исследования рассмотрен кейс ТОО «KazParts», где была реализована интеграция 1С: Управление торговлей, веб-платформы электронной коммерции и инструментов QR-/link-платежей. Методологическую основу составили case study, сравнительный анализ ключевых показателей эффективности и элементы процессного анализа. Эмпирическая база включала события ERP-системы, данные сайта по заказам, подтверждения оплат и экспертную оценку операционных изменений за период с июня 2025 г. по начало 2026 г. Результаты показали существенное сокращение времени отражения оплат, заметное уменьшение доли ручных операций по сверке, снижение операционных рисков, связанных с оборотом наличности, и рост масштабируемости обработки заказов. Показано, что единая цифровая экосистема повышает скорость, управляемость и уровень самообслуживания клиентов в сегментах B2B и B2C.

Keywords: digital transformation, ERP integration, order-to-cash, e-commerce, QR payments, business process optimization, accounts receivable, case study.

Ключевые слова: цифровая трансформация, ERP-интеграция, order-to-cash, электронная коммерция, QR-платежи, оптимизация бизнес-процессов, дебиторская задолженность, case study.

Introduction

Digital transformation is increasingly interpreted not as the isolated implementation of software tools, but as a systemic reconfiguration of business processes, organizational routines, and value creation mechanisms under the influence of digital technologies [6; 7]. In this context, enterprise systems and integrated digital platforms are of particular importance because they affect not only data processing, but also operational speed, control quality, and managerial decision-making [5].

One of the most sensitive cross-functional processes in distribution companies is the Order-to-Cash (O2C) cycle, which covers customer order creation, confirmation, fulfillment, invoicing, payment registration, and accounts receivable control [4]. Prior studies emphasize that O2C performance is highly dependent on the degree of manual work, the number of handoffs between departments, and the quality of information exchange between sales, warehouse, and finance functions [3]. High manual involvement in O2C usually produces delays, rework, posting errors, low transparency, and slower cash conversion.

The relevance of the present study is determined by the practical need to evaluate how a combined digital solution — ERP, e-commerce, and bank payment integration — changes the logic and effectiveness of the O2C process in a real company environment. For wholesale and retail distributors, this issue is especially significant because a large number of transactions, differentiated pricing, credit limits, customer-specific discounts, and debt monitoring require timely and error-resistant data processing.

The purpose of the study is to assess the effect of ERP–e-commerce integration and QR-/payment-link automation on the efficiency of the O2C process in TOO KazParts. The object of the study is the O2C process in a wholesale and retail distribution company. The subject of the study is the influence of digital integration mechanisms on payment processing speed, manual workload, error probability, and operational scalability.

The research hypothesis is that the implementation of a unified digital O2C contour based on ERP, website self-service, and automated payment registration significantly improves transactional speed, reduces manual reconciliation work, and increases process transparency.

Materials and methods

The study applies a case-study approach, which is appropriate for investigating complex organizational and technological transformations in real business settings [8]. At the same time, the work incorporates elements of design-science logic, since the researched result is associated with the creation and evaluation of a digital artifact in the form of an integrated O2C solution [2].

The empirical basis of the study includes:

• ERP transaction data from 1C: Trade Management;
• website records related to customer orders and status changes;
• payment confirmation data received through banking integrations;
• expert assessments from the IT, sales, warehouse, and accounting functions.

The observation period covers the implementation and early operation phase from June 2025 to early 2026. Due to commercial confidentiality, exact financial values and some client-specific data are not disclosed. Therefore, part of the KPI block is presented in interval or approximate form; however, all figures reflect realistic operational estimates derived from internal system events and managerial validation.

Before automation, the company relied on a manager-driven order model for a large share of wholesale transactions. Sales managers collected customer demand, manually registered orders in ERP, and transferred them for warehouse fulfillment. Payments were often completed in cash after delivery or pickup, and funds could be physically transferred through drivers or sales representatives to the cashier-accountant. This created a time lag in debt reduction, increased dependence on manual posting, and exposed the process to risks of delay, mismatch, and cash-handling incidents.

After digital transformation, the company introduced an integrated model with the following components:

1. synchronization of products, prices, stock balances, customer cards, discounts, and credit limits between 1C and the website;
2. self-service order placement for customers through the website;
3. automatic order transfer from the website to ERP;
4. automatic transfer of operational statuses from ERP to the website;
5. payment by QR code on shipment documents and payment links sent after shipment confirmation;
6. automatic creation of acquiring/payment documents in ERP upon successful payment confirmation.

The evaluation of results was based on a before/after comparison using the following KPI groups:

• payment posting time;
• share of manual reconciliation operations;
• operational error rate in payment posting;
• debt-status update lag;
• order-processing capacity and customer self-service intensity.

In methodological terms, the study also draws on process-oriented thinking and log-based evaluation principles, which are widely used in process mining and business process analysis [1].

Results and discussion

The analysis showed that before digital transformation, the O2C process contained several bottlenecks. First, order entry for wholesale customers depended heavily on sales managers, which limited throughput and increased the cost of routine operations. Second, payment registration was not synchronized with the actual moment of client settlement. Third, debt status updates were often delayed because payments passed through physical intermediaries or were reconciled manually by accounting personnel. Such a process architecture created not only time losses, but also controllability losses.

The new digital contour substantially changed the process structure. Website-based ordering shifted part of routine order entry from employees to customers themselves, while ERP integration eliminated repeated manual data entry. At the payment stage, QR codes and payment links created a direct digital connection between the client’s payment action and the accounting reflection of that action in the ERP environment.

Table 1 summarizes the key performance indicators before and after implementation.

Table 1.

 Comparative indicators of the O2C process before and after digital transformation

A comparative analysis of key performance indicators before and after digital transformation is presented in Figure 1.

Figure 1. Comparison of Key Performance Indicators Before and After Digital Transformation

As shown in Figure 1, the strongest effect was achieved in the payment and reconciliation block. This is consistent with prior research showing that enterprise systems create the greatest measurable value when they reduce cross-functional fragmentation and improve operational visibility [5]. In the investigated case, digital payment registration eliminated one of the most problematic elements of the previous model — the temporal and informational gap between customer payment and its reflection in the system.

An additional effect concerns accounts receivable management. In the previous state, wholesale customers could face temporary restrictions in placing new orders because their debt status in ERP did not reflect recently transferred funds. In the new state, digital payment confirmation updates customer debt almost immediately, which improves turnover continuity and customer satisfaction. This observation corresponds to the broader view that O2C optimization is closely linked to both liquidity control and customer service quality [3; 4].

The case also demonstrates an important managerial effect: digital transformation did not simply accelerate separate tasks, but redesigned the interaction model between departments. Warehouse operations, customer communication, accounting, and debt monitoring became more tightly connected within one information loop. Such integration reduced the number of handoffs and shortened the path from order placement to payment reflection.

To further illustrate the structural changes in the business process, Figure 2 presents a comparative model of the Order-to-Cash workflow before and after automation.

Figure 2. Transformation of the Order-to-Cash Process Before and After Digital Transformation

The process model demonstrates that the company moved from a fragmented, manager-mediated, and partially cash-based workflow to an integrated digital architecture with automated event propagation across ordering, shipment, payment, and receivables control. This result supports the understanding of digital transformation as a change in the operating model rather than a mere software upgrade [6; 7].

At the same time, several limitations should be noted. First, part of the B2C payment flow remains outside full automation, since card-based retail payments still require statement export and subsequent accounting actions. Second, the study is based on a single-company case, which limits statistical generalization. Third, some KPI values are interval-based due to confidentiality constraints. Nevertheless, from an analytical perspective, the findings are sufficiently robust for identifying the direction and scale of process effects.

Overall, the results confirm that the integration of ERP, e-commerce, and digital payment instruments significantly improves process efficiency, reduces operational risks, and enhances customer experience. The most important practical effect lies in the combination of speed, control, and scalability achieved without proportional growth in administrative workload.

Conclusion

The conducted study shows that the digital transformation of the O2C process in TOO KazParts produced substantial operational and managerial benefits. The integration of 1C: Trade Management, website self-service ordering, and QR-/payment-link-based settlements changed the logic of the process from manual and fragmented to automated and event-driven.

The main results of the study are as follows:

1. payment posting time was reduced from delayed manual handling to near-instant registration;
2. the share of manual reconciliation work decreased sharply;
3. the probability of human-related posting errors was minimized;
4. customer debt visibility became real-time, improving continuity of commercial operations;
5. the company gained higher order-processing scalability and broader customer self-service capability.

From a managerial perspective, the key value of the implemented solution lies not only in labor savings, but also in improved controllability of receivables, reduced dependence on intermediaries in payment circulation, and a more reliable link between commercial and accounting events. The case confirms that digital O2C redesign can serve as a practical mechanism for business process optimization in distribution companies operating in both B2B and B2C segments.

The findings may be useful for companies planning ERP-centered digital transformation projects where the expected outcomes include acceleration of settlements, reduction of manual operations, and enhancement of operational transparency.

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