Principal Objective:
Establish state-of-the-art credit and receivables management procedures and policies, significantly increase the percentage of accounts collected at optimal cost, enhance sales growth and customer satisfaction with a level of risk that maximizes total profitability.

Project Background:
Concern exists regarding operational effectiveness of the current credit and collection policies, practices, and procedures. Client company would like to establish a state-of-the-art credit and collection function (includes creating the most efficient operating environment, e.g., centralized, semi-centralized, or decentralized). Credit and collection policy, procedures, and structure are desired, which clearly identify a Best Demonstrated Practices approach to credit extension and receivables management. This methodology includes, but is not limited to, staffing, position responsibilities, credit review, collection technique, and credit and collection systems.

Operational Review Deliverables:

• Conduct a process assessment and gap analysis of credit and collection procedures, practices, systems and staffing.
• Identify collection impediments.
• Analyze order receipt, credit application, credit checking, activation, fulfillment, billing, complaints, payment procedures, and collection process.
• Validate efficiency / effectiveness of current operating environment including organizational structure, geographical location, reporting chains and incentive programs.
• Review collection/customer care relationship / synergy.
• Review sales terms and conditions.
• Evaluate credit information and outsourcing providers, collection agencies and collection attorneys.
• Identify / recommend credit and collection performance measurements (for example, Days Sales Outstanding - DSO, Weighted Days Sales Outstanding, Collection Effectiveness Index - CEI, Best Possible DSO, Bad Debt Percentage, Percent of Accounts Receivable Over 90 Days, Aging Roll Rate, etc.):
  *Benchmark versus Best Demonstrated Practices
  *Goals for corporation.
  *Goals for associate performance.
• Review collection technique/effectiveness.
• Evaluate current credit and collection strategy offering strategic direction and recommendations.
• Review cash application process.
• Educate management in programs that are initiated by highly successful credit and collection departments through sharing of Best Demonstrated Practices.