Great decisions begin with intelligent data

Intelligent management of your accounts receivable will have a direct impact on your cash flow and working capital management. The logic here is quite simple: Great management begins with great decision making. At the bottom of every great decision is strong data. If the data you have on hand is bad, it naturally follows that your decision will be weak. So the question really is whether you have great data in hand and whether you are looking at the right reports.

How TA turned the tide in Accounts Receivables:

In the case of one of our customers, we achieved 36% reduction in total receivables and 30% improvement in working capital funding in a matter of just 7 months. Needless to say, this turnaround required some astute AR management and close monitoring of key reports.

Customization of reports

The first step was to produce reports in a timely and accurate fashion. The mini ERP, like all other software applications did provide aging reports. What was lacking however was further customization on these reports matching the specific features of the customer business model, client behaviors, conditions for working capital funding etc. That's because most software applications are generic in their treatment of functional requirements. Further customization is expected to be done by the customer. Most customers would lack the in-house expertise and resources needed to accomplish this. This in turn leaves customers short of reports that help them achieve their goals.

Intelligent segregation

In this customer‘s case, we segregated the AR list into clusters of customers based on their payment behavior patterns. We then monitored these reports periodically with diligent follow-up.

Releasing cross-functional energies

Next, we brought out reports that highlighted bottlenecks in customer account management by various brokers and sales forces. This helped to release cross-functional energies and the result was soon evident. TA not only brings you the advantage of customization, but also enables information reporting to help you achieve your bottom line.