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MC2: Managing Credit, Collections & Deductions

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Presentation on theme: "MC2: Managing Credit, Collections & Deductions"— Presentation transcript:

1 MC2: Managing Credit, Collections & Deductions
-Moving money from the balance sheet to the income statement

2 History Founded in February of 2001 to create the best of breed Credit, Collections and Deductions application for manufacturers, distributors, service & construction Partners SAP/ASUG Infor Complementary Partner Oracle / PeopleSoft JDE Quest Partner CashBook Over 130 customers worldwide Our application will manage over 60 Billion dollars in FY 2006 Every customer is live and on the current release Never had a failed project

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4 AR Database’s are Complex
Collectables – Clean receivables Disputes – Dirty receivables Deductions- Dirty receivables Clean Receivables Collectables : transactions that are not disputed & whose receipt can be forecast Dirty Receivables Disputes : transactions that disputed and not paid Deductions : transactions that are customer debits

5 Portfolio Challenges Headquarters Parent Customer Invoice

6 What problem are we solving?
AR analysts manage up to 5 five different processes Order hold/release Collections Credit Deductions and disputes Sales rep support Each process requires different workflows ERP Systems are designed to process transactions and post to the GL What tools are being used today to manage this strategic asset?

7 Current AR Tools Outlook/Notes Ticklers Collaboration Contacts
AR system Ticklers (?) Notes Contacts(?) AR Inquiries Invoice reprint Order hold/release Credit limit changes Word Letters Internal collaboration Paper Aging reports Statements Notes (?) Ticklers (?) Deduction folders Excel Account analysis Internal collaboration Deductions(?) Internet POD’s Banking information Customer web sites Fax Machines Collaboration Imaging Systems Documentation Network Drives Store customer information Credit eRam, etc. Others

8 Structural Inefficiencies

9 Streamline Workflows

10 Key Features Delivered
Segregate aging to improve decision making Streamline order hold/release processing Optimize in-bound credit checking logic Prioritize collections/deductions activities Rules based collections to maximize cash flow Automated customer touches via letter engine Improve collector efficiency Track, manage and control deductions Integrate AR process with key stakeholders Deliver new reports New controls drive performance Customer, collector and company Cash flow forecasting

11 Success Stories Napa Auto Parts Ashley Furniture Club Car
20% DSO reduction yielding 7 figure annual benefit Ashley Furniture Sales grew from 860 million to $3.5 billion while AR headcount was reduced by 20% Club Car Collection efficiency increased 32% yielding a first year $500K benefit Ferrero Inc. (Tic Tacs, Nutella, Rocher) In first six months, while sales increased 25%, DDO decreased by 20%, headcount by 25% Typical customer sees a minimum DSO reduction of 10% in first year ROI’s measured in months

12 Success Drivers Technical Designed for Mapics IFM and AM Financials
Real-time integration Extension file-based Multi-currency and language Localization No risk project No ERP system changes required All Cforia functionality is incremental Few IT resources required to implement and maintain Loads in a few hours Trained and running in under 3 days

13 Quote to Cash Business Process
Sales Cycle Enter Order Ship/ Invoice Receive Payment Charge-Backs MC2 Credit Order Entry Acct MC2 Collections MC2 Deductions Cash Based CRM Sales Rep Management Sales Cycle Collaboration Order Hold and Credit Limit Mgmt. Credit Risk Analysis Credit Scoring Sales Rep Portal Customer Self Service Rules Engine Invoice auto-fax Tickler system Letter Auto-Fax Dispute Mgmt Accountability Rules Engine Deduction tracking and aging Credit Memo auto-fax Tickler system Letter Auto-Fax Dispute Management Dispute Accountability Collaboration Portal Total Control

14 Enterprise Collaboration Portals
Customers MS2:Customer Portal All AR inquiries Reprints Exports Payments (3rd party) On-Line MC2/MD2 Management Tool Work queues Workflow Notes Disputes Credit limits Deductions AR Inquires Letters Exports Collaboration Sales MR2: Sales Rep Portal All AR inquiries Reprints Collaboration On-Line AR Specialist MD2-Web: Portal Deduction inquiries Attachments/notes Collaboration On-Line Collaborator MC2-PM: Portal Job management Collaboration Automation On-Line Project Mgrs.

15 Reporting & Dashboard

16 Cforia’s AR Breakdown for clean and dirty receivables

17 Breakdown aging in many ways

18 Drill Down Ability to analyze AR for each customer

19 Excel by sales rep, collector,
Cash flow forecast exportable into Excel Excel by sales rep, collector, customer, parent or company

20 The Cforia Difference Only vendor to provide real-time data access
We pioneered the order release functionality in the industry Single interface for all credit, collections and deductions activities Extremely easy to use Very quick implementations All development and support is on-shore Customer intimacy and customizations

21 What our Customers are Saying
“MC2 is the first tool I have ever seen that uses only our undisputed open A/R, and takes into consideration our customer's historical payment patterns to derive an overall cash receipt forecast.  The tool has improved my ability 10-fold to not only forecast our cash receipts activity, but also when to quickly identify variances from actual cash receipts.  MC2 represents a quantum leap forward for our company from both a collection and a cash management perspective.” – Steve Font, Corporate Director of Treasury, Turner Industries

22 Pamela Bauer Cforia Software


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