1 MC2: Managing Credit, Collections & Deductions -Moving money from the balance sheet to the income statement
2 HistoryFounded in February of 2001 to create the best of breed Credit, Collections and Deductions application for manufacturers, distributors, service & constructionPartnersSAP/ASUGInfor Complementary PartnerOracle / PeopleSoftJDE Quest PartnerCashBookOver 130 customers worldwideOur application will manage over 60 Billion dollars in FY 2006Every customer is live and on the current releaseNever had a failed project
4 AR Database’s are Complex Collectables – Clean receivablesDisputes – Dirty receivablesDeductions- Dirty receivablesClean ReceivablesCollectables : transactions that are not disputed & whose receipt can be forecastDirty ReceivablesDisputes : transactions that disputed and not paidDeductions : transactions that are customer debits
6 What problem are we solving? AR analysts manage up to 5 five different processesOrder hold/releaseCollectionsCreditDeductions and disputesSales rep supportEach process requires different workflowsERP Systems are designed to process transactions and post to the GLWhat tools are being used today to manage this strategic asset?
7 Current AR Tools Outlook/Notes Ticklers Collaboration Contacts AR systemTicklers (?)NotesContacts(?)AR InquiriesInvoice reprintOrder hold/releaseCredit limit changesWordLettersInternal collaborationPaperAging reportsStatementsNotes (?)Ticklers (?)Deduction foldersExcelAccount analysisInternal collaborationDeductions(?)InternetPOD’sBanking informationCustomer web sitesFax MachinesCollaborationImaging SystemsDocumentationNetwork DrivesStore customer informationCrediteRam, etc.Others
10 Key Features Delivered Segregate aging to improve decision makingStreamline order hold/release processingOptimize in-bound credit checking logicPrioritize collections/deductions activitiesRules based collections to maximize cash flowAutomated customer touches via letter engineImprove collector efficiencyTrack, manage and control deductionsIntegrate AR process with key stakeholdersDeliver new reportsNew controls drive performanceCustomer, collector and companyCash flow forecasting
11 Success Stories Napa Auto Parts Ashley Furniture Club Car 20% DSO reduction yielding 7 figure annual benefitAshley FurnitureSales grew from 860 million to $3.5 billion while AR headcount was reduced by 20%Club CarCollection efficiency increased 32% yielding a first year $500K benefitFerrero 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 yearROI’s measured in months
12 Success Drivers Technical Designed for Mapics IFM and AM Financials Real-time integrationExtension file-basedMulti-currency and languageLocalizationNo risk projectNo ERP system changes requiredAll Cforia functionality is incrementalFew IT resources required to implement and maintainLoads in a few hoursTrained and running in under 3 days
13 Quote to Cash Business Process SalesCycleEnterOrderShip/ InvoiceReceive PaymentCharge-BacksMC2 CreditOrder EntryAcctMC2 CollectionsMC2 DeductionsCash Based CRMSales Rep ManagementSales Cycle CollaborationOrder Hold and Credit Limit Mgmt.Credit Risk AnalysisCredit ScoringSales Rep PortalCustomer Self ServiceRules EngineInvoice auto-faxTickler systemLetter Auto-FaxDispute MgmtAccountabilityRules EngineDeduction tracking and agingCredit Memo auto-faxTickler systemLetter Auto-FaxDispute ManagementDispute AccountabilityCollaboration PortalTotalControl
18 Drill DownAbility to analyze ARfor each customer
19 Excel by sales rep, collector, Cash flow forecastexportable into ExcelExcel by sales rep, collector,customer, parent orcompany
20 The Cforia Difference Only vendor to provide real-time data access We pioneered the order release functionality in the industrySingle interface for all credit, collections and deductions activitiesExtremely easy to useVery quick implementationsAll development and support is on-shoreCustomer 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
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