Company:
Major Parts Manufacturer and Distributor
Performance Goal:
Get customers to pay invoices faster to achieve bottom-line savings.
Key Metric:
Days Sales Outstanding (DSO)
Strategy:
Reduce DSO by identifying, prioritizing and monitoring the progress of collections activities so that the most critical customer segments are proactively managed.
Solution:
Vizion developed and implemented an advanced reporting and analytics solution that organizes the client's AR data. The solution delivers visual tools (dashboards and scorecards) that graphically illustrate key DSO oriented metrics by customer type:
* Aging
* Credit risks
* Collection opportunities
* Days to pay trending
When the client visually identifies an issue or trend the solution enables them to point-and-click for immediate access to relevant detailed reports that allow drill-drown all the way to invoice level information by account.
Result:
Within six (6) months the client had improved their collections process and DSO was decreased by 1.5 days. Working capital finance charges were reduced resulting in a significant contribution to the company's bottom line.