Transformed Systems Using Analytics for Auto Parts Distributor

Challenge

A private equity-owned auto parts distributor had inefficient internal finance processes, causing excessive cycle times that resulted in poor customer experience and overdue accounts receivable. The company needed to transform their AR functions to optimize the collections strategy and improve the customer experience.

Approach

Our team assessed the current state credit and collections processes and identified areas for analytical enhancement. We leveraged advanced algorithms to predict risky customers and aligned collections strategy by segment, analyzed technology solutions available and managed end-to-end implementation of cloud solutions, optimized the staffing model based on operational improvements and reduced process and billing errors, and deployed a cloud-based billing/payment portal. This allowed us to identify a 10% improvement in enhanced working capital and enhanced ability to expand credit capabilities.