Increase Cash Flow with Automation
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The document discusses the impact of technology on improving the efficiency and effectiveness of credit operations, particularly in managing trade receivables. It highlights the benefits of fully integrated order-to-cash solutions, revealing significant increases in productivity, visibility, and cash flow while reducing operational costs and days sales outstanding (DSO). Automation is emphasized as a key driver for performance improvement, enabling better credit risk management, faster payment collections, and overall enhanced financial operations.
![Q&A Lucia Cotis, VP Global Marketing - AvantGard Jon Reeves, VP Strategic Accounts - AvantGard GETPAID [email_address] 973-463-1500 / 800-395-9996 www.sungard.com/avantgard/getpaid AUTOMATION TECHNOLOGY](https://image.slidesharecdn.com/increase-cash-flow-with-automation-27480/85/Increase-Cash-Flow-with-Automation-15-320.jpg)
Increase Cash Flow with Automation
- 1. Using Technology to Increase the Efficiency and Effectiveness of the Credit Operation
- 2. Drivers for Technology Poor Management of Trade Receivables Inefficient & ineffective management of working capital, particularly trade receivables, is often the cause of poor cash flow and high operating costs within the finance operation. Companies that implement a fully integrated Order-to-Cash solution can significantly improve productivity and visibility leading to improved financial and operational performance. Using Automation to Drive Performance The Underlying Cause The lack of automated systems and integration has resulted in low productivity, ineffective processes, and poor visibility.
- 3. MEASUREMENTS OF EFFICIENCY & EFFECTIVENESS *Source, Hackett Group, 2005 Book of Numbers. World Class Finance Organizations Score in the top 10% for Efficiency & Effectiveness Measurements of World Class Finance Performance Days Sales Outstanding (DSO ) (Peer Comparisons) Effectiveness Operating Costs: (FTE / $Billion in Revenue) Efficiency
- 4. WORLD CLASS PERFORMANCE *Source, Hackett Group, 2005 Book of Numbers. Finance Staff per Billion of Revenue Efficiency Gains: 51% Lower FTE Requirements
- 5. WORLD CLASS PERFORMANCE *Source, Hackett Group, 2005 Book of Numbers. Increased Economic Return Effectiveness: 55% Lower Days Sales Outstanding
- 6. WHAT IS DIFFERENT? *Source, Hackett Group, 2005 Book of Numbers. Reduce Redundancy & Error Improve Visibility Consolidation of Disparate Systems Leverage Data & Resources Improve Communication Collaboration Drivers for World Class Performance Automation vs. Manual Processing Increase Productivity Enabling Technology
- 7. BENEFITS OF AUTOMATION Automated & Integrated Order-to-Cash Solution Challenge Credit Risk Management & Risk Alerts Detailed Reporting / Portfolio Management / Forecasting Track Adherence to Embedded Policy Internal Controls Sarbanes-Oxley Integrated Cash Application in Real-time Automate Collections & Dispute Processing Online Customer Self-Service / EIPP Boost Operating Margins Identify Deductions during Cash Application Proactively Identify & Assign Ownership of Disputes Facilitate Collaboration with Customer & Sales Portals Reduce Bad Debt Expense Automate Cash Collections to Expedite Payment Proactively Identify & Assign Ownership of Disputes Consistently Monitor Corporate Credit Risk Exposure Increase Cash Flow and Lower DSO
- 8. 1.5 hrs / 18% 6 hrs / 75 % ENABLING TECHNOLOGY: AUTOMATION .5 hr / 7% 1. Prioritize 1 hr / 13% 4. Follow-up 2.5 hrs / 31% 5. Report .5 hr / 7% 2. Prepare 1 hr / 13% 3. Contact 3 hrs / 36%
- 9. CONSOLIDATION OF SYSTEMS Consolidate Data from Multiple Sources to Single Solution Embed Policy to Automate Processes & Drive Workflow Leverage Data Across the Entire Order-to-Cash Cycle Facilitate Internal & External Collaboration Track Performance, Adherence to Policy & Effectiveness Integrated Order-to-Cash Management Credit Risk Self-Serve EIPP Collections Disputes Claims Cash Application Cash Management A/P Workflow
- 10. COLLABORATIVE TECHNOLOGY CREDIT OPERATION Credit Facilitation Collections Management Dispute Resolution Cash Application Role Based Interfaces RULES ENGINE Customers COLLABORATE Sales Service Executive Centralized Database Consolidate Data Centralized Repository Oracle Legacy SAP JDE
- 11. COLLABORATION TECHNOLOGY CREDIT DATA PROVIDERS SALES & SERVICE CUSTOMERS TREASURY
- 12. IMPACT ON EFFICIENCY Lowered DSO by 11% in 1st Year Increased Customer Contacts 10 Fold Reduce Past Due A/R by $15 Million Interfaced GETPAID with SAP. Medical Devices Reduced FTE in US Alone by 56% Decreased Past Due A/R by 30% in 1 st Y Improved Visibility to Global Organization Multiple business and data Feeds Distribution Decreased DSO by 29% Reduced Open Dispute Volume by 87% Decreased Past Due A/R by 24% Root-cause Analysis Multiple business units on AS/400 systems. Transportation Reduced DSO by 36 Days Reduced Dispute Volume by 98% Maintained FTE with 125% Revenue Growth Interfaced GETPAID with SAP – global. Oil & Gas Increased Average Collector Portfolio 85% 57% Decrease in Past Due A/R Reduced FTE from 30 to 5 with 11% Growth Consolidated data from 30 different ERP & A/R Systems. Media Services Results Environment Company
- 13. IMPACT ON EFFICIENCY Lowered DSO by 11% in 1st Year Increased Customer Contacts 10 Fold Reduce Past Due A/R by $15 Million Interfaced GETPAID with SAP. Medical Devices Reduced FTE in US Alone by 56% Decreased Past Due A/R by 30% in 1 st Y Improved Visibility to Global Organization Multiple business and data Feeds Distribution Decreased DSO by 29% Reduced Open Dispute Volume by 87% Decreased Past Due A/R by 24% Root-cause Analysis Multiple business units on AS/400 systems. Transportation Reduced DSO by 36 Days Reduced Dispute Volume by 98% Maintained FTE with 125% Revenue Growth Interfaced GETPAID with SAP – global. Oil & Gas Increased Average Collector Portfolio 85% 57% Decrease in Past Due A/R Reduced FTE from 30 to 5 with 11% Growth Consolidated data from 30 different ERP & A/R Systems. Media Services Results Environment Company
- 14. FLEXIBLE TECHNOLOGY Developments in Technology Allow Companies of All Sizes to Benefit: IN-HOUSE SOLUTIONS HOSTED SOLUTIONS ASP SOLUTIONS
- 15. Q&A Lucia Cotis, VP Global Marketing - AvantGard Jon Reeves, VP Strategic Accounts - AvantGard GETPAID [email_address] 973-463-1500 / 800-395-9996 www.sungard.com/avantgard/getpaid AUTOMATION TECHNOLOGY