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Collections Optimisation:On Time & Ahead of TargetJuan Manuel GarciaVP BSU FinanceAmsterdam 16th May 2012© 2010 Colt Techn...
Colt Technology Services…2
Colt Technology Services…•       We are a solution-focused B2B        company•       We are a € 1.5 Billion company•      ...
Why centralise Collections? •   Supports CFO strategy (Centralise, Standardise, Capital Efficiency) •   We were already ce...
What we set out to achieve …•       Consolidation of the Credit & Collections team and creation of a centre of        exce...
The enablers….•       Expansion of our Shared Services Center in Barcelona•       Technology enablers implemented along tr...
What we delivered… (i)•       All credit and collections activity centralised in Barcelona SSC•       Standardised process...
What we delivered…(ii)•       Improved productivity and quality         •   50% increase in credit check and reviews perfo...
Evolution of some KPI’s…..                Disputes16,00014,00012,00010,000 8,000 6,000 4,000 2,000    -         9
What are the challenges we still face…   Process Improvement                          Systems                             ...
Thank youjuanmanuel.garcia@colt.netwww.colt.net© 2010 Colt Technology Services Group Limited. All rights reserved.
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Collections Optimisation

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Transcript of "Collections Optimisation"

  1. 1. Collections Optimisation:On Time & Ahead of TargetJuan Manuel GarciaVP BSU FinanceAmsterdam 16th May 2012© 2010 Colt Technology Services Group Limited. All rights reserved.
  2. 2. Colt Technology Services…2
  3. 3. Colt Technology Services…• We are a solution-focused B2B company• We are a € 1.5 Billion company• We are mainly pan-European, going global• More than 30% of our employees are in Shared Service Centers• We operate Shared Service Centers in India (Gurgaon and Bangalore), Spain (Barcelona) and Romania (Sibiu)• More at www.colt.net 3
  4. 4. Why centralise Collections? • Supports CFO strategy (Centralise, Standardise, Capital Efficiency) • We were already centralised to a degree having one bank and one ERP • We were already successfully operating a Finance SSC in India • What are the business benefits  Full visibility of Credit and Collection activity  Synergies with business support teams already based in Barcelona  Process optimisation and improvements  Consistent approach to control and measure AR performance  Improve Cash and Capital Efficiency (DSO),  Resources (Reduction and Costs)  ….. 4
  5. 5. What we set out to achieve …• Consolidation of the Credit & Collections team and creation of a centre of excellence to improve the cash collections cycle (move 13 countries into one location, 45 FTEs)• Implement a new collection and credit software to support the centralisation.• Improve efficiency across all the activities resulting in better KPIs.• Drive more effective risk management discipline, decisions to be automated using regular market data updates. 5
  6. 6. The enablers….• Expansion of our Shared Services Center in Barcelona• Technology enablers implemented along transition – • Implement new interactive collection software (E-collect) to maximise electronic engagement with customers. • Credit software – Portfolio Manager (automatically issues alerts and warnings when a customers credit risk has deteriorated) • GDM Global Decision Maker – provides a fully automated credit decision based on predefined criteria, allowing C&C team to focus on the value add• Process changes - accelerated billing, making bills available to customers earlier• Centralised billing and dunning mail to customers 6
  7. 7. What we delivered… (i)• All credit and collections activity centralised in Barcelona SSC• Standardised processes and new software to drive efficiencies• Aggressive timescale (migration done from April to October 2011• Cash Flow Impact • Savings – € 1.5 million on annual personnel cost and € 0.2 million annual savings related to dunning costs, credit reports, litigation and other outsourced costs • DSO improvement by 3 days • Significant improvement in YTD cash collected compared to 2012 • + € 35 million!! 7
  8. 8. What we delivered…(ii)• Improved productivity and quality • 50% increase in credit check and reviews performed (+ 9000 records) • Full visibility and control of C&C related cost • Standard process and procedures • Daily automated dunning activities• Business engagement - New engagement model defined with the business • Formal escalation process agreed • Regular review calls in place with all divisions • New weekly C&C dashboard developed• Project payback • 8 months payback since initial transaction 8
  9. 9. Evolution of some KPI’s….. Disputes16,00014,00012,00010,000 8,000 6,000 4,000 2,000 - 9
  10. 10. What are the challenges we still face… Process Improvement Systems Operational enhancements excellence • Processes currently under • .Develop reporting • Stabilization of overdues. review: opportunities in E-collect  At same level of performance  Write offs • Improve monitoring of invoice expected at the end of Q2 as  Rejected DD statuses Dec 10  Disconnection/ reconnection • Data clean up (payment terms,  Decrease of aged buckets process legal addresses, etc..) (+90s) with direct impact on bad debt provision/P&L  Transfer of Service • Develop front end platform with E-collect enabling self  Over 365s clean up.  Dispute process management-reduce cost and • Small accounts deep dive • Full analysis on non-standard speed up development process. processes in C&C: • Continuous improvements for • E-collect wish list – design and the rest of the year in terms of cash  Upload of invoices in customer set up modifications collection, overdues and DSO portal • C&C reporting rationalization-  IN-OUT payments E2E review of AR reports together  Credit Policy under full review with stakeholders • Improve metrics – “Best DSO” 10
  11. 11. Thank youjuanmanuel.garcia@colt.netwww.colt.net© 2010 Colt Technology Services Group Limited. All rights reserved.
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