Transformed Systems Using Analytics to Reduce Overdue AR by 30% for PE-Owned Auto Parts Distributor

Capabilities

Private Equity & Financial Sponsors Industrials & Infrastructure

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

Assessed current state credit and collections processes and identified areas for analytical enhancement
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 staffing model based on operational improvements and reduced process and billing errors
Deployed cloud-based billing/payment portal

Results

Reduced outstanding AR by 30% in 5 months

II.

Implemented technology to reduce credit decisioning by 85%

III.

Reduced 70% of paper statements within 12 months

IV.

Identified 10% improvement in enhanced working capital and enhanced ability to expand credit capabilities

[shared_counts]

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