Lean Six Sigma for AR
Leverage AR department data to improve quality, reduce chargebacks and resolve disputes.
Accounts Receivables Management is a customer facing activity that maximizes contact in order to successfully achieveits primary mission of driving improvements in metrics such as DSO and DDO. Front line collection employees often uncover
customer problems that have been caused elsewhere within the company.
Auto Cash Application processing codes customer chargebacks and disputes that stem from other departments.
Chargebacks and Disputes follow up by deductions analysts is chartered with finding inappropriate deductions that can be
recovered and identification of root causes to prevent avoidable deductions.
Lean Working Capital by improving AR department productivity to speed up the order-to-cash cycle and reduce chargeback
revenue slippage. Increase the number of outbound daily collection calls. Prioritize the calls to focus on collection activities
that will maximize cash flow. Aggressive follow up to deductions throughout your company will recover inappropriate
chargebacks and avoid future occurrences of quality related adjustments.
Facilitate Collaboration between your shared services AR employees, BPO, outsourcers, other company stake holders,
brokers and your customers. Quickly and seamlessly communicate and escalate chargebacks and disputes to the correct
stakeholder.
Maintain Accountability to assure that collaboration stake holders provide feedback to AR department chargeback and
dispute inquiries in a timely manner. Use a database driven approach that prevents follow up items from falling into the cracks.
Improve Customer Satisfaction through a robust note and collaboration system that codes a dispute correctly and routes
the follow up action item to the correct point of contact on the first customer call.
Robust Reporting provides root-cause analysis of deductions that drive process improvements.
- Build a case that explains the financial implications of a broken current process.
- Avoid anecdotal appeals that are easily dismissed.
- Maintains audit history of requests for issue collaboration and resulting response or lack of response.
Features:
- Real-Time Seamless Integration of any ERP system(s) including SAP, Oracle, Baan, Lawson, PeopleSoft, JD Edwards,
BPCS, Microsoft Dynamics NAV, MAPICS and many others. - Avoid data silos caused by multiple ERP Systems.
- Real-Time data access promotes seamless collaboration.
- Provide visibility into broken processes that need to be improved.
- Create an audit trail. Track collaboration history and responses.
- Code, collaborate and perform root-cause analysis on Chargebacks.
- Avoid manual spreadsheets and email.
- Increase follow up with both internal and external employees.
- Increase profitability by decreasing chargebacks through recovery and avoidance.
- Decrease expenses through recovery of unearned chargebacks.
- Improve customer satisfaction through collaboration that facilitates timely problem resolution.
- Facilitate lean six sigma quality improvement processes through root-cause analysis.
- Support product quality and quality of service initiatives.
Link to replay Lean Six Sigma for AR webinar.
"Cforia's software allows our receivables department to collaborate with other departments about
problems that we uncover. Our customers get problems resolved quicker, without have to reach out
to other departments. Fixing problems in a timely manner makes happy customers who pay on time.
During the first year, we reduced DSO by 20 percent generating over $500,000 in working capital."
- Club Car
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