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Veritas creates transformational change through driving credit management performance

Our client was a £63m turnover supplier of goods to high street retail outlets and the construction sector. The company had amassed a £17m sales ledger balance over 1,500 customers. With two sales ledgers being operated on two separate finance systems, there was no cohesive credit control process in place. The departure of the credit manager six months earlier meant that the team had been without management and the Senior Management had no visibility of the performance of the sales ledger.

The project sought to identify the reasons for the aged debt not being collected, create clarity around the treatment of the debit notes being received, examine the query resolution process, review the credit note authorisation process and make substantive people and systems recommendations to effect permanent process and performance improvements.

Critical Improvements
Through the project the following issues were identified and reported;
• High volume ledger (c. 40,000 line transactions)
• Sales order process causing ongoing pricing issues
• Backlog situation in the returns department
• Recent re-location of the client had resulted in staff / knowledge loss throughout the sales and credit control teams
• Credit management module of the finance system was not configured
• No management reporting was available from the credit control department
• Urgent training requirements within the credit control team
• Interim credit manager required with immediate effect

Veritas Driven Outcomes
To support the critical change required, Veritas provided extensive on the ground support, including the following;
• An interim credit manager resource was provided to the business by Veritas to manage the credit control team on site (3 month assignment, engagement terms with the client)
• Six month outsourcing of the credit control function to Veritas and the set up of a query resolution team in-house
• Review of the system functionality and the provision of credit management reporting
• The Veritas team attended the weekly client board meetings to discuss the sales order process issues, query resolution and credit control performance
• A complete restructure of the credit control team
• Recruitment and training of a credit manager
• Scope and testing of the credit control system and implementation
• Once the ledger reached “steady state” and the new team was fully trained by Veritas,the credit control function was transitioned back in house.

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