case study
|
Background
Company A: a supply chain management company.
Has a
turnover of £40m and 250 employees. Terms of trade
are net monthly.
3,000 live accounts (individuals & companies),
high volume, low value transactions, working across 3 computer
systems due to previous acquisitions.
|
Periodic evaluation can be offered to
ensure that as the business evolves so do the Credit Management practices. Contact APP Credit Management today…
|
|
|
|
Issues:High
Days Sales Outstanding (DSO) of 90 days and loss of
business due to unhappy customers
Objectives: To maximise cash
flow, minimise bad
debts
and improve customer relations
Options: Allow situation to continue and deteriorate
Or
Engage
APP Credit Management
|
|
|
|
APP
Action Plan: To identify main issues / potential reasons
for
high DSO. To identify cause of increased DSO ie. high volumes
of queries.
Structure Action Plan: •Assess
debtors ledger • Review existing
processes & procedures • Review current
strategy for collections
• Cross functional computer systems • Formulate
Credit Management
health check report Recommendations: • Through
the health check report • Management
selects which recommendations they wish to implement • APP
implements management’s chosen recommendations • APP
evaluates
outcomes • Make adjustments if required
and offer further suggestions
for the future.
|
|
|
|
|