A Nordic trail from transparency to Accounts Receivable performance26 July 2022
A Scandinavian industrial company wanted to become worldclass in Accounts Receivable management. The company offers a wide range of sustainable products for everyday use, made of renewable, recyclable, and biodegradable materials. It employs 10.000+ people and has production plants in several countries.
Lack of Process Transparency
After years of business growth, the company’s Accounts Receivable department was struggling with an overly complex process. The department lacked a process for handling claims and was held back by unclear roles and responsibilities. Procedures and controls were not up-to-date and incomplete. The absence of transparency and common understanding prevented effective collaboration within and outside the department.
TriFinance performed an audit of the situation and worked with management to set up a pragmatic action plan. Through data analysis and document review, the TriFinance team was able to identify the root causes, obtain buy-in, and initiate the implementation of improvement opportunities.
Workshops and Actions
Through workshops and a process walkthrough, a series of steps was taken to bring the department to the next level of performance.
- Clear roles and responsibilities were defined with a dedicated care team responsible for handling discrepancies.
- Procedures and controls were established and communicated to key personnel.
- Reports were defined with a clear distinction between managerial and operational indicators.
- A claims handling process was designed with a highly effective log system to exchange information across departments and provide management with an overview of the financial impact of claims.
- A claims policy was also implemented with clear roles, responsibilities, and an authorization threshold for management in finance and operations.
TriFinance’s best practices in advisory and implementation enable us to create end-to-end solutions. The success of this project relied on our combined expertise in finance, credit management, process analysis, and project management.
Through co-creation and hands-on collaboration, we found pragmatic solutions for the client’s Accounts Receivables process owner and specialists.
In large companies, the challenge resides in aligning the conflicting needs of the different departments. With resources usually deployed geographically, project management is of paramount importance.
Communication and expectations management proved to be essential ingredients for meeting ambitious deadlines. A poorly motivated team can unravel even the best project plan.
‘A contemporary project manager needs to be more than just a scheduler and contract manager,' CFO Services Project Manager Vicky Posthumus says. Vicky thrives by excelling in managing those complex human elements that are critical to the success of her projects.