We cut your bad debts back by 12%
Unique after using Doocuments technology reduces the collection period by 8.2% ABOUT UNIQUE >
Unique, specialized in staffing, recruiting and consulting, places workers in temporary and permanent jobs and deals with HR issues.
In the economic trend of crisis that Europe is going through, and by reducing the credit to small and medium-sized companies, the delay that is being experienced in the payments to suppliers is becoming a common financing practice.
Not only does Unique deal with temporary placement jobs but it also deals with all the needs that a company may have regarding training. Unique adapts itself to the needs of the different companies through the IN-HOUSE Services and via the direct hire staffing solutions.
Unique-type clients are mainly small and-medium-sized companies that had to face delays in their debt collection, and in turn causing a significant increase of DSO or of the average debt recovery term, which worsened the cashflow and working capital of these enterprises.
The implementation of debt recovery management technologies or to support the debt collection such as Doocuments, improve, in accordance with the analysts, the companies’ debt recovery term from 5% to 20% and reduced the staff-related costs from 10% to 30% SOLUTIONS > One of the measures implemented by the company’s top managers has been to improve the debt collection processes by incorporating a new technology in the debt collection management department that enables them to reduce the quarterly debt collection by 5%, and improve the success rate of the debt collection and the bad debt management by 10%. Doocuments is an integral part of the daily technology used by Unique as the traceability of access and use of the documents that Doocuments provides is essential to prevent bad debts. The project consists of forwarding all the invoices that are generated through Unique’s ERP in a Doocuments format replacing the traditional pdf. Thanks to the advanced traceability of the forwarded invoices that Doocuments technology provides the debt collection managers are informed of those customers with invoices, that at one week’s due date, have not passed the attention threshold or have not been printed either. This pattern for invoice processing has been identified as the minimum necessary to collect an invoice.
The results, after improving the processes and implementing Doocuments, have of course been very fruitful for Unique. The project and its results have been a success regarding figures and cost savings. Firstly, Unique’s DSO have been cut back by 8.2% quarterly, therefore significantly improving the company’s cash-flow (compared with the previous quarters). Secondly, the workload of the bad debt management processes has also been cut back by reducing the bad debts on the due date by 12%. Finally, the staff dedicated to the collection of debts have also been cut back. The surplus of such human resources has been employed in new business processes and, therefore, reducing the costs of the personnel impacting on the debt collection process by approximately 16% annually.
CRITICAL SUCCESS FACTORS > The adoption of e-invoices by Unique is without doubt one of the key factors of the project. An important amount of the invoices used by Unique are digital ones, that’ why the implementation of such a process has been carried out faster than expected. The information flows to the employees easily. They only have to read their e-mails or open a website. Thanks to the creation of different control panels along with an optimized system of notifications and alerts the time dedicated by the managers to the filtering process to obtain listings of potential defaulters is reduced.
The correct integration in Unique’s invoicing system is with no doubts another of the most important features.
Avenida de las Universidades 24 48007, Bilbao, Spain / Telephone: +34 94 413 90 32 / www.doocuments.com / Email: firstname.lastname@example.org
Published on May 17, 2012
ABOUT UNIQUE CHALLENGES We cut your bad debts back by 12% Not only does Unique deal with temporary placement jobs but it also deals with all...