
Collections as a process in O2C have never been an easy one, and previously it was highly dependent on a reactive dunning model. This model meant waiting for customers to go past due dates before collectors started following up with them. While this model may have been adequate in the old economy, the current state deems it high-risk, if not obsolete. With more customers turning delinquent or failing to pay, significant effort and cost are expended to capture overdue payments.
Collection teams need to develop a strategy that helps them ensure the promise-to-pays are honored by analyzing customer payment behavior proactively to optimize working capital.
2. Leverage the payment date prediction tool to reduce DSO
AI and ML can help collections management become more proactive by predicting payment dates at a customer or account level based on past payment behavior and current open invoices.
1. 7.1% rise in the average days to pay
2. 21.50% decline in payment commitment honoring
3. 32.50% spike in dunning activities
Collections operations within organizations are in dire need of innovations that could improve the overall process efficiency and help optimize working capital. Transitioning from traditional methods of operation to more data-driven futuristic and scalable digital solutions is the way forward. Additionally, having global visibility across all A/R operations with the help of a platform that consolidates all the data from internal teams helps break silos and contributes to faster revenue growth.
HighRadius RadiusOne AR Suite provides the complete collections solution to streamline labor-intensive processes by automating correspondence and providing a native dialer while delivering a personalized CX. It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, MS Dynamics, and scales to meet the needs of your order-to-cash process.
Lightning-fast Remote Deployment | Minimal IT Dependency
Prepackaged Modules with Industry-Specific Best Practices.