Credit Management

1. Average Days It Takes to Complete New Credit Reviews

Efficiency Metric Best Practices from World-Class Organizations:

• Implementation of best-of breed online credit application
• Automated† correspondence for missing information such as bank/trade references, backups
• Providing real-time tracking of application status

Benefits:

• Improve customer experience with greater visibility
• Reduced manual errors

†

2. Automated Versus Manual Credit Modelling Tools

Efficiency Metric Best Practices from World-Class Organizations:

• Automated stakeholder correspondence for all credit decisions
• Integrating with country-specific and industry specific credit agencies, public financials and Insurance bureaus
• Automated capture of the fields from† the credit application form

Benefits:

• Standardize credit operation across various platforms
• Improved productivity to work on high value customers

Billing and Invoicing

3.Percent of Invoices Generated & Distributed Electronically

Efficiency Metric Best Practices from World-Class Organizations:

• Adopt automated e-invoicing portal
• Deliver invoice according to customer preferred channel such as portal and e-mail
• Track conversion of customers from paper to†† e-invoice

Benefits:

• Self-service customer portal saves print+ mail costs
• Eliminate low-value tasks in billing and invoicing such as dealing with paper, doing back-and-forth

4. Average Time It Takes to Bill

Efficiency Metric Best Practices from World-Class Organizations:

• Self-service customer portal for viewing invoices
• Using a single portal which includes all relevant backup documents such as PODs, BOls
• Streamlined collaboration between internal teams

Benefits:

• Lower payment cycles
• Improved customer experience

5. Percentage of Invoices Corrected for Billing Errors

Effectiveness Metric Best Practices from World-Class Organizations:

• Automated invoice generation from ERP open invoices
• Inbuilt correspondence templates and packages with auto-attached documents

Benefits:

• Lower deductions
• Faster collections
• Better customer experience

6. Percent of Customers Who Access Accounts via Web-based Application

Effectiveness Metric Best Practices from World-Class Organizations:

• Invoicing customers electronically via email, portals
• Allowing customers to pay in electronic payment formats ACH, Credit cards and e-Checks through payment portal
• Offering incentives to customers to bring them onto Web-based portals

Benefits:

• Faster payments
• Improve E-adoption
• Better customer experience

Cash Application

†7. Process Cost per Customer Remittance

Efficiency Metric Best Practices from World-Class Organizations:

• Standardized processing for different e-remittance types
• Automated aggregation of remittances from portals,e-mails and EDI

Benefits:

• Easy e-adoption in payments
• Lower cost in process payments

8. Automatic Remittance Posting Matching Rate

Efficiency Metrics Best Practices from World-Class Organizations:

• Template-agnostic remittance capture
• Aggregating the remittances from multiple sources( mails, EDI, web-portals)
• AI enabled payment matching & exception handling

Benefits:

• Reallocate users
• Reduced costs

Deductions Management

9. Average Dispute Resolution Cycle Time

Efficiency Metric Best Practices from World-Class Organizations:

• Identifying deductions at Cash Application
• A single repository for all the backup documents such as notes, claims across internal and external teams
• Track deductions aging

Benefits:

• Improved recovery of invalid deductions
• Better adherence to big box retailers such as Walmart

10.Percent Of Dispute Are Not Resolved By The Initial Resolver

†& Needs To Be Escalated Within The Management Team Effectiveness Metric

Best Practices from World-Class Organizations:

• Providing visibility into resolution status and progress of the dispute
• Seamless collaboration between internal teams
• Easing the research process by having all the documents at one single place

Benefits:

• Lowers DDO
• More bandwidth to work on invalid deductions

Collections Management

11. Process Cost per Collection Contact

Efficiency Metrics Best Practices from World-Class Organizations:

• Providing a prioritized worklist for collectors
• Adopting automatic correspondence approach versus dial for dollar approach
• Having single source of truth across various platform to access backup documents such as invoices copies, claims documents

Benefits:

• Design scalable collections operation
• Facilitates reaching out to a broader customer base

12. Collection Contacts per FTE

Efficiency Metrics Best Practices from World-Class Organizations:

• Inbuilt correspondence templates and packages with auto-attached back-up documents to save time
• Sending pro-active reminder to customer prior to the payment due date
• Automated correspondence to different customer buckets

Benefits:

• Restricting phone calls to only select high-risk customers
• Reduce aging/ past dues

13. Average Days Delinquent

Effectiveness Metric Best Practices from World-Class Organizations:

• Sending automated proactive reminders before payment due date
• Predict when the customer is about to pay using Artificial Intelligence
• Provide customers with self-service portal for viewing invoices and making payments

Benefits:

• Improve working capital
• Reduce dependence on banks for short-term banking

14. Percent of Credit Sales Collected within Terms

Effectiveness Metric Best Practices from World-Class Organizations:

• Provide incentives for early payments
• Enable payment features such as auto-pay, schedule pay

Benefits:

• Improve Days Sales Outstanding
• Minimize missed payments

Order-to-Cash

15. Process Cost as Percent of Revenue

Efficiency Metric Best Practices from World-Class Organizations:

• Ensure high employee productivity by eliminating manual error prone tasks
• E-adoption from paper
• Keep a track on high-risk customers to ensure there is minimal bad-debt and write-off

Benefits:

• Improved working capital and cash flow
• Easier cash management