Our CFO’s objective was the reduction of Bad Debt by 20%, while the management wanted to maintain a similar ROI, with 2 FTEs retiring.
The collections team at Staples was practicing paper-based processes and manual prioritization of customer accounts, which led to increased aging – making collections recovery tedious. Everything was done on paper – from aging to strategizing, P2Ps to call notes, and invoicing to collections. A report was generated at the beginning of the month to prioritize all the accounts. The aging reports, prioritization of critical customer accounts, and call notes were collected on paper separately. These made the team devote at least 25-30% of their time to manual activities, leading to an increased workload.
Their current ERP made collections recovery more complex due to its limited capabilities. The sales team was not getting updates on accounts status due to which they had to reach out to their customers multiple times leading to poor customer experience.
The 7 member collections team at Staples was struggling with a global customer base where each analyst was handling 900-1000 accounts, with aging buckets ranging up to 1000 days – gathering information from 20 different customer portals. To complicate the situation, these accounts included multiple parent-child scenarios.
Moreover, for the huge number of accounts, the data was spread across various channels due to which they could not focus on critical accounts. Collections for selective accounts had also been outsourced, making it difficult to track their collection status and gave them minimal transparency across those accounts.
Staples is the leading operator of office supply superstores in the US. With 75+marketplaces worldwide, the CPG Giant sells a wide range of office supplies (papers, pens, stickies, notebooks, folders, clips), as well as office furniture and computers, and printers along with business and technology services.
Consumer Packaged Goods
With HighRadius Collections Software, Staples replaced their manual processes with automated dunning which helped them to prioritize high-risk customers further suggesting new collection strategies based on more relevant parameters. As a result, Staples was able to reduce its bad debt by 20%.
After implementing HighRadius Collections Software, Staples has been able to have real-time insights into customer accounts. Staples is able to fast-track its collections process with 5 days reduction in Average Days Delinquent(ADD), and at the same time able to compare the KPIs of its collection team.