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Client team

  • UK subsidiary of Global speciality chemicals business in the building and construction market, with manufacturing operations in Country.
  • UK team with extensive experience in Order to Cash consulting, supported by workshop design and Client Director.

Project aims

  • Underperforming Order to Cash processes with high disputes and overdue debt.
  • Client required structured leading practice processes to help change the culture and improve results.
  • Final definition of system configuration to embed revised processes.

What we did - our role and activities

    Role

    • Confirm solution to collection performance, design segmentation and dispute process and system configuration to significantly improve cash flow.

    Activities and Deliverables

    • 2 week analysis of key processes in customer service and collection. Identified improvement and timescale.
    • Completed 6 week programme, designed leading practice segmentation, dispute processes and metrics.
    • Developed / ran workshops, tested processes and got buy-in.
    • Implementation and training in revised collection processes.
    • Implemented cash target tool and key metrics.
    • Documented procedures for collection and dispute process and reporting.
    • Documented processes for systems configuration.
    • Management buy-in to secure process focus and support.

Successes

  • Reviews of monthly OTC reporting. Total care review after 6 months.

Results

  • Overdue debt down from 27% to 6%.
  • DSO down by 23% to lowest recorded.
  • Dispute value down by 70%.
  • Dispute volume down by 60%.
  • Monthly KPI’s tracking performance.
  • Cash targets set monthly and hit.
  • Improved culture, enthusiasm and personal performance.