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Confidential information to be used by Sara Lee Corporation

FSCM – Credit Management

Credit Expo presentatie – 17- november 2010


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ZONDER DOEL KAN JE NIET VERDWALEN

DUS

JE KAN VERDWALEN ONDERWEG NAAR JE DOEL


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Process Model Acc. Receivable

Activate*Activate*Bill*

ManageExposure

Customer Revenue Cycle

Prospect* Transact*ProcessOrder

GrantCredit*

HandleDisputes/

Deductions*Apply

Payments

Collect*


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Collection Management

Management:

In algemene zin;Het organiseren, leiden en uitvoeren van deactiviteiten van een persoon, groep, organisatie ofonderneming.

Het beheer van de menselijke en materiëlehulpmiddelen.

Belangrijk is vooral het toepassen van richtlijnen inplaats van het formuleren daarvan.


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Actions taken to restructure Acc. Receivable

April 2008 – June 2010

• Restructure Acc. Receivable staff- May/Aug 2008

• Restructure administrative procedures- Oct 2008 / Oct 2009

• Process improvements- Oct 2009 / June 2010


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Critical aspects Credit Management process

• Invoice receipt / invoice details

• Dunning process

• Dispute management

• Clearing of payment receipts

• Deductions

• Unallocated cash


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Problem Statement• Difficult to control the work load in the AR department

- Deviation in collection strategy needed.- Portfolio management required

• No support of correspondence by e-mail

• Difficult to report on workload and kpi’s

• Transfer to collection agency not in electronic format

• No integration for complaint management

• No integration between collection activities, paymentpromise and recording.


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Business requirements

• Segmentation of debtors portfolio- For collection and dunning

• Work list with agenda and follow up function• Integration with complaint management

- Details on invoice level / Monitoring• Electronic correspondence with customers

- Confirmation of customer contacts- Customer statement and dunning

• Automated file transfer to third parties- Collection Agency

• Reporting on workload and results- On group and individual level


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Technical requirements

• European support facilities• Language package for European roll out• SAP certified interfaces

- Minimize interfaces as much as possible• System integration with actual ERP system

- Minimize duplication of data• User friendly

Supplier requirements• European track record• Price / Performance


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Business Support setup:

• Grant Credit- Risk Management SAP FI- Customer Master SAP CRM / SAP FI

• Activate / Transact- Sales order management SAP CRM / SAP FI- Order block [credit block] SAP FI- Complaint management SAP CRM

• Collect- Dunning procedures SAP FI- Collection agency integration SAP FSCM- Collection management SAP FSCM- Dispute management SAP FSCM

• Apply Payments- Cash Application SAP FI

• Reporting- KPI reporting SAP BW- Management reports SAP BW


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New Approach implemented in FSCM

• Collection organization and strategy workflow- Automatic generation of collection work lists based on strategy

• Dispute integration- Integration between SAP CRM and Daily Taks Manager

• Automated dunning procedures- Account statements and dunning letters- Integration with collection agency

• Generation of workflows- Auto write off work flow- Clearing proposal work flow

• Workload reporting- Production figures on individual staff members- Contact results including promise to pays etc.


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Change Management aspects:

• Priority settings based on strategy rules• Collectors act on work list items

- System indicates, collectors activate actions.• Proper registration of customer contacts• Management reports / monitor

- Includes workload balancing• “On screen” documentation [no excel notes]• High dependency on master data settings


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Work list display / Strategy Settings


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Work list display / Strategy settings


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Assignment of collector……………………………….Assignment of substitutes

Collector assignment

Substitute assignment


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Reporting:


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Activities Customer Care Center / Sales Accounts Receivable

Create or Change customer data R – Data processing & Contract detailsC – Control on data entry

I – Informed for segmentationA – Advice on credit limit and credit check [D&B]

Order entry and delivery R – Data processingR – Initiate credit check

A –Analysis credit check [orange / red]A - Credit block analysis & releaseC – Control on release policy and credit limits

Invoicing R – Processing & MailingC – Control on correct processing

I – Informed via aging

Dunning I – Informed based on aging R – Processing & MailingC – Control on aging

Complaint and Issue management R – Registration of Complaints [primair]R – Complaint handling & solutionC – KPI management on complaints

R – Registration of Complaints [secundair]I – Informed for chasing and dunning

Credit Control management I – Informed by weekly reportingI – Credit block / Collection AgenciesI – Business Unit meetings [monthly]

R – Collect callsR – Collection AgenciesA – Advice on credit block / write offC – Weekly and Monthly reporting

Debet and Credit management R – Processing credit notesC – Bonus payment reviews / Trade Deals

I – Informed on debets / credits [bonus]R – Netting debets and credits

Interactions AR and MSU

R = ResponsibleC = ControlA = AdviceI = Inform


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The Business Case:Activity Breakdown Manual AR procedures

Preparation;15%

Prioritize; 20%

Analyse; 10%CustomerContact; 30%

Folluw Up; 25%

Preparation Prioritize Analyse Customer Contact Folluw UpActivity Breakdown IT support AR

Preparation;10%Prioritize; 5%

Analyse; 10%

CustomerContact; 60%

Folluw Up; 15%

Preparation Prioritize Analyse Customer Contact Folluw Up

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