GDS International - CFO - Summit - US - 1Document Transcript
Business Process Outsourcing the way we do itCredit Management throughOrder-to-Cash BPOCapgemini Order-to-Cash Service helps reduce days salesoutstanding, improve cash flow, and enhance financeefficiency.
Built on years of experience and The opportunity for improvement Based on Capgemini’s experience,feedback from our customers, may be significant. Some this approach can yield short-Capgemini offers a comprehensive companies lose up to 4% of term benefits of up to:Order-to-Cash (O2C) solution, their revenues due to poor creditcovering process analysis, • 30% cut in delinquent management and cash collections.implementation, daily operation, receivables, Trying to fix these problemsand state-of-the-art software. in-house may cause finance costs • 20% savings throughCapgemini’s O2C offering to escalate and attention to be operational efficiencygives competitive advantage by diverted away from more strategic improvements,improving cash flow, drivingsignificant cost savings, enabling opportunities. But there is a way to stop the loss, the risk, and the • 20% savings fromsustainable revenue assurance, and infrastructure investments.reducing days sales outstanding frustration.(DSO). Longer term, the resulting To be most effective and assure improved financial positionAs organizations expand their more than just modest savings yields:operations and drive top- and process improvements, cashline growth, the task of credit collections should be integrated • enhanced investment growth,management becomes increasingly into a comprehensive operationdifficult. Various terms of credit, credit and risk management, • flexibility and scalability tocustomer payment practices support business cycles and collections, query and disputeand market volatilities cause growth, management, and reporting.finance executives to pay more Data consistency and process • significantly better analytics,attention to credit and collectionsmanagement. integration are a couple of key pre-requesites to achieving • enhanced risk management, integration. • greater customer satisfaction.Business Challenge Assets Key Benefits• Revenue leakage of 1-4%, • Global order-to-cash service • Revenue assurance – reduced depending on industry sector revenue leakage • Outcome-based delivery model• Excessively high DSO • Reduced DSO • Webcollect – a world-class order-• Rising delinquent receivables to-cash platform • Reduced bad debt writedowns• Challenge to meet revenue • ISO certified delivery centers • Enhanced scalability and flexibility collection goals while increasing • Global Process Model™ with best • Better analytics and risk management promotional activity practice processes• Lack of visibility due to • Rapid implementation and decentralized debt collection transition
Business Process OutcomesCapgemini has strengthened its • Capgemini VWA’s Order-to- Rightshore® globaloffering with the acquisition of VWA, Cash solutions are based on the network of on-shore,the leading credit management and Capgemini Global Process Model™ near-shore and offshoreaccounts receivable specialist. The (GPM) *) which documents centers across the world.service line focuses on delivering best practice for each and every Rightshore® delivers thethe outcomes you need in credit operational business process. We optimum mix of language,management, collections, and order- often start a delivery engagement skills, costs efficiency andto-cash. by mapping a client’s own process flexibility to meet each client’s against our GPM to uncover areas business goals.We recognize that each client has for potential improvement.unique needs, especially when it • Capgemini recognizes that clientscomes to the order-to-cash process. • Capgemini has embedded the want to manage their serviceIt is part of our DNA to work with insight and best practice of GPM provider relationship throughour clients collaboratively to build into technologies and tools, which a contractual relationship thatsolutions that fit their industry- help deliver standard operations is aligned with their businessspecific demands and cultural and fast time-to-value. For the requirements. The Capgemini VWAdifferences. Order-to-Cash service, we combine O2C service can be contracted in the Capgemini BPOpen service a variety of ways, giving the clientUnderpinning each solution is a layer with VWA’s state-of-the-art flexibility and choice. Our goalunique set of Capgemini VWA tools, software, Webcollect. is to design and build a businessprocesses and expertise that has stood partnership that delivers betterthe test of time: • The Capgemini VWA service is outcomes for our clients. delivered through the CapgeminiDelivering Better Business Outcomes within the O2C ContinuumTechnology and functionality focused on client needs
The Software – Webcollect Collect as you go – with Webcollect you can follow the progress of your collections live Webcollect The Capgemini Order-to-Cash service conjunction with flexible account incorporates VWA’s leading solution treatment methodologies, CONTROL for debt collections: Webcollect transforms and simplifies the process • Allows streamlining and efficiencies• MASTER DATA of automating receivables collection within accounts receivable with• CREDIT & RISK MANAGEMENT management. a combined approach of risk management, predictive account• WIP & STOCKS Webcollect is based on Capgemini’s scoring, and portfolio management Global Process Model™. It protocols, encompasses everything from the headline process, down through all • Supports regulatory constraints as ANALYTICS the subsets of each process stack, to SAS-70 compliant, the desktop procedures associated• REVENUE ASSURANCE with the execution of a specific task • Provides multi-currency and within the order-to-cash process. multi-language support to global• UPSELL enterprises, The Solution:• PLANNING & FORECAST • Constitutes a unified state-of-the- • Delivers platform independence art platform, delivered as a web and supports integration to back- application (software-as-a-service) end systems like SAP, Oracle, or installed behind your firewall, PeopleSoft, etc. PERFORMANCE• TREASURY • Incorporates industry best practices via hierarchal workflows, in• SALES EFFICIENCY• PROMOTIONS MANAGEMENT *) Certain features and aspects of the Global Process Model are the subject of one or more pending patent applications owned by Capgemini and/or its affiliates.
Order-to-Cash End-to-End OfferingBetter Client Outcomes: Capgemini’s holistic Order-to-Cash Solution incorporates best practice processes, industry leading tools, and expertoperational services.A global, high-tech firm with $4bn in A consumer packaged goods giant with A telecom operator with $900m in yearlyrevenues a year, was experiencing high annual sales of $12bn was relying on a sales maintained track of a high volumegrowth in a multiple currency and legacy system with multiple data feeds of cell phone transactions, with high partlanguage environment. It desperately to support a high volume and velocity due accounts receivable, high disputeneeded to cut its DSO. Capgemini helped of transactions. Capgemini helped to rates, and high credit risk.to achieve: achieve: Capgemini helped to achieve: • Global roll-out to 20 countries in 7 • 36-day shorter DSO, • 26% lower DSO in year 1, languages, • 88% cut in dispute volume, • Ten-fold increase in customer contacts, • 27% decrease in past due A/R, • 31% higher cash collection. • 40% cut in past due A/R. • 8-day reduction in DSO.“ We chose Capgemini above competitors becausethey were offering smart customer relationshipmanagement and best industry practice with realisticand measurable goals. Their offering focused on qualityand a partnership built on honesty and trust. ”