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Best Practice Database
Business Operations » Financial Management » Credit and Collections Management
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3 Best Practices
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This benchmarking study was conducted to gain insights into how the credit and collections function within a manufacturing company is best managed to create the greatest efficiencies and service. This 30-slide presentation provides key metrics and a great deal of qualitative lessons learned that will enable organizations to compare the structure and management of their credit and collections functions against those of the benchmark class and leverage the practices of other organizations. The study will enable organizations to identify performance gaps and areas for improvement to better manage their credit and collections functions.
• Optimal Credit and Collections Structure
• Efficient Systems for Credit and Collection Processes
• Credit and Collection Function Improvements and Results
• Qualitative Lessons Learned:
• Process Management Opportunities
• Key Credit & Collections Issues
• Key Customer Service Issues
• External Communication Issues
• Internal Communication Issues
The following metrics show the percent of companies in the benchmark class in various categories in the following areas:
• Centralization in Credit and Collections Departments
• Departmental Responsibility for Credit and Collections
• Ranges of Percentages of Remittances Posted in 24 hours
• Ranges of Percentages of Payments that are Automatically Matched & Applied
• Use of Automated Credit Remittances
• Electronic Invoice Presentment & Payment (EIPP) Utilization
• Credit & Collections Management Improvements
• Practice of Charging Back Unearned Discounts to Customers
• Effectiveness Ratings of Various Dispute Management Policies
• Effectiveness Ratings for Various Management Improvement Initiatives
SAMPLE KEY FINDINGS
• Centralization of credit and collections functions allows for consistency of policy implementation across the company.
• Systems that are transparent to clients and communicated effectively can increase efficiency of payment.
• Dispute management systems have been found to have a significantly beneficial impact on improving customer satisfaction and improving collections while reducing days sales outstanding.
This research was conducted by Best Practices, LLC through an Internet Benchmarking Exchange project based on a survey of sixteen companies representing the manufacturing industry.
If you purchase Best Practice Database document(s), you will have 30 days from the date of purchase to apply some or all of the cost of the document(s) toward the cost of a Full Access Individual, Pharma, Group or University Membership. Write us at DatabaseTeam@bestpracticesllc.com or call David Guinn at 919-767-9179 if you have any questions.