Case Studies - Credit & A/R Management
With rising Uncollectibles in its advertising & publishing business, this major telecommunications company had just invested greatly in its collections infrastructure and systems. Supporting business processes, however, were hesitant to revise its methods and procedures to avoid interference in obtaining new customers and losing existing good customers. Collections and collector performance reporting was minimal causing uncertainty of how well processes were performing. The Company needed to gain a better understanding of its processes while leveraging its new collections system and decision engine.
The Company recognized that any recommendation or solution proposed must be guided by the following tenets and constraints:
- Revenue and/or profitability must not be negatively impacted
- Outside Collector Agency (OCA) fees should not increase
- Do not interfere with the sales process
- Without overwhelming evidence to support any changes, credit policy should not be an area of focus
Knowledge Solutions performed a detailed analysis of the customer's business processes, policies and systems infrastructure. Components of this assessment included: data correlation, data analysis, policy and process review, and evaluation of the use of key decision engine and collections systems routines. This evaluation identified the key elements necessary to further reduce their Uncollectibles while maintaining their positive revenue stream. To provide improved business intelligence, Knowledge Solutions delivered the appropriate data structures and analytical cubes to allow for time-series analytics.
Recommendations made by Knowledge Solutions to the customer would result in the following impact to their business:
- Improved business analytical platform
- Improved customer treatment scenarios
- Improved productivity and responsiveness
- Increased ROI on collections infrastructure
- Achieve competitive advantage