How to Prioritization Your Collections
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Speaker : JOHN G. SALEK
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When : Wednesday, January 29, 2020
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Time : 01 : 00 PM EST
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John G. Salek, President, Revenue Management Associates, LLC
Revenue Management Associates (RMA) helps companies optimize their use of trade credit to increase revenue and margin, control exposure to bad debt, improve cash flow, and reduce operational costs.
- 30 years experience in Invoice to Cash solutions development working in a broad range of industries with over 250 clients
- Author of Accounts Receivable Management Best Practices published by John Wiley
- B. S. Business Administration from the University of Connecticut, MBA in Finance from The Tuck School of Business at Dartmouth College
Collection prioritization guides the collection process by specifying in what order customers are contacted to secure payment of open receivables (i.e., AR). This applies to both B2B and B2C receivables. It focuses the scarce collection resources in your organization to minimize AR delinquency, risk of bad debt loss, and cost of AR management while maximizing cash flow from AR.
Objectives of Today’s Discussion
- To define how an effective collection prioritization methodology is developed
- To recognize that every organization’s Collection Prioritization will be different
Key elements to be discussed are
Alignment with Your Organization’s Strategy
- Go to Market
- Trade Credit
How to Develop the Right Collection Prioritization for Your Organization
- Know your AR portfolio: dimensions, customer characteristics, etc
- Define Prioritization Parameters
- Blending Multiple Priorities
Benefits: Effectiveness and Efficiency
An optimal Collection Prioritization Methodology must be carefully tailored to an individual company. No two companies will have the same Go to Market or Trade Credit strategies, the same product/service mix, or the exact same customer base. These differences must be incorporated into the Collection Prioritization strategy to achieve optimal results. Optimal Collection Prioritization enables an organization to achieve excellence in Accounts Receivable (AR) management at the least cost.
Areas Covered
- Introduction
- Align with Your Organization’s Strategy
- Go to Market
- Trade Credit - How to Develop the Right Collection Prioritization for Your Organization
- Know your AR portfolio: dimensions, customer characteristics, etc.
- Define Prioritization Parameters
- Blending Multiple Priorities - Benefits: Effectiveness and Efficiency
- Case Studies and Conclusion
- Questions
Course Level - Intermediate
Who Should Attend
Members of the Finance community responsible at some level, for managing a firm’s AR asset (CFO’s, Controllers, Treasurers, Credit Directors/Managers)
Why Should Attend
Is your Credit Department unsure of which customers to contact and in what order to efficiently manage your AR asset? Are they careening from one crisis to the next? Does it seem to have a high staff level? An old Marketing maxim is that “half my advertising is wasted, but I don’t know which half”. Does this apply to your collection efforts?
Learn:
- The benefits of optimal Collection Prioritization
- The principles and techniques of implementing an excellent Collection Prioritization methodology tailored to your firm’s unique customers and capabilities.
At its worst, collections can be a reactive process, focusing efforts on:
- Receivables in danger of becoming uncollectible (bad debt), and
- Past due receivables which have triggered a “hold order” condition
Optimal Collection Prioritization enables your AR management effort to be proactive to minimize the occurrence of the two conditions cited above. It will address at-risk AR earlier in the process, thus minimizing its value. It will also resolve the vast majority of past due to AR conditions that delay/hold orders, thereby ensuring a continuous supply of products and services to the majority of your customers. The result: happier customers, smoother order fulfillment and incrementally increased revenue.
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$149.00
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