What is Collection Management:
Collections Management is an established expression for customer centric receivables management.
Collection Management Supports:
- Evaluation, identification, stratification and prioritisation of accounts
- From a risk management perspective
- From a customer relationship perspective
- Proactive collection of receivables
- Payment reminders
- Promise to pay arrangements
- Follow ups
- Process optimisation and automation for high volumes of open items
Collection Management - Important Business issue
- Increasingly bad payment behaviour
- Increasing DSO (Days Sales Outstanding)
- No reaction on automatic correspondence like dunning
- Financial situation influences customer relationship
- Collections management is today mostly a time consuming, costly and cumbersome process
- Select and prioritise customers to be collected
- Search for Account information
- High volumes
What are the business objectives
- Increase share of collected receivables
- Reduce DSO
- Avoid write offs
- Increase payment on time
- Decrease cost of cash collection
- Improve customer relationship managment
