Optimize Order-to-Cash (OTC)
Are you struggling with credit and collections?
Cash and receivable issues are on the radar screen for senior-level executives, board members, and Wall Street. If you’re struggling to increase free cash flow, SolomonEdwards’ Dash-for-Cash (DFC) program is a novel approach to Order-to-Cash (OTC) that frees up working capital by bringing cash in the door and establishing a roadmap for a sustainable model — including a plan to deliver quick results.
Our Approach
We put experienced people on the ground, working alongside your personnel to identify high priority OTC improvements that have immediate impact on the effectiveness of AR collections. We use a two-phased approach to assess internal practices while executing on the DFC program.
Is SolomonEdwards’ program the right fit for you?
If you check some of these boxes, there’s a good chance that we can find your cash and help you improve your processes:
- Is your DSO growing?
- Is your Allowance for Bad Debt growing?
- Are your Shared Services teams failing to achieve targets and KPIs?
- Has your Past Due AR increased following a recent system implementation?
- Is your Customer Master missing key data needed to bill and collect?
- Is there a lack of accountability for dispute resolution?
- Do you have multiple ERP systems and lack visibility into detailed Agings?
- Are there poor incentives for your sales and/or customer service team to fix collection issues?
- Do you have a big year-end fire drill to bring in cash?
- Do you lack the bandwidth or expertise to develop a strategic plan to resolve Past Due AR?
Credit & Collections Health Checklist
Download this health checker to assess whether you need OTC help. If you answer yes to any of these boxes, there’s a good chance that we can find your cash and improve your processes.
Download brochureAddressing Key Components of the OTC cycle
Creditworthiness
of the AR portfolio
How many of your customers without standing receivable balances are over their credit limit?
Collateral Controls
What's the visibility and access to your contract datasbase?
Reserve Policy
What is your policy and how are you enforcing it?
Collections Process
How well are your collectors following best practices when it comes to day-to-day processes?
Tools & Systems
Do you have a collections dashboard? Are you using a collections module? Have there been data migration or integration challenges?
Dispute Management
Do you have a dedicated team to resolve invoice disputes?
Cash Application Controls
How often does a cash applicator misapply cash to the sub-ledger?
The Approval Matrix
and delegation of authority
How are overrides to credit limits approved and tracked?
Organizational Structure
including segregation of duties
How siloed are responsibilities between collections and cash application?
AR Aging
analysis of trends and data integrity
How structured is the data integrity and are there issues with the story that the AR sub-ledger tells?
Program Benefits
✓ Drive faster collections
✓ Recover reserved balances to achieve ROI
✓ Increase liquidity
✓ Improve customer experience
✓ Improve visibility and accountability through KPIs
✓ Use time and money for other projects
What Our Clients Say
Our novel approach to OTC optimization
SolomonEdwards embeds a team to immediately start collecting cash, all while cataloging root cause data. We will:
- Roll up our sleeves alongside your teams
- Validate the processes impacting the ability to collect
- Offer recommendations to fix them
- Identify root causes for non-payment with your Customers, Collectors, and Sales Teams
- Recommend sustainable changes to drive down DSO
….all while we’re collecting money for you and generating a positive ROI!
How we've helped others:
Global Manufacturer of Industrial Equipment
$80M collected with 700% ROI
SolomonEdwards helped a Fortune 500 company operating in 50 countries in the middle of an initiative to free up $200- $300 million in cash flow from its AR balances throughout its global footprint. We helped the client realize a 700% ROI on consulting fees with the following benefits: • Over $33M collected in the first 16 weeks from customers; $80M in total • Recovered $19M in bad debt reserves by focusing on severely aged items • Developed a roadmap for sustainable improvements to be achieved in 4-6 months
Leading Industrial Services Company
Reduced DSO by 7 days
An industry leading supplier of advanced industrial safety equipment and services was falling short of its targeted DSO and working capital. The management team engaged SolomonEdwards to assess its OTC processes, establish targets, and develop a prioritized roadmap. We deployed a modified DFC project team for their specific distressed portfolio. • Reduced DSO by 7 days in 4 months • Established a cross-functional accountability model for Past Due AR • Developed detailed plans to achieve the remaining DSO reduction and transitioned to the client team to execute
Global Manufacturer of Consumer Products
567% ROI
A large manufacturer of commercial and residential equipment was in the starting phase of adopting a new global credit organization with a focus on reducing past dues $350M by year end. With 3 global shared service centers and 55 ERP systems/configurations in use, they had no centralized reporting to give direction on how to proceed. The Company turned to us for a tailored assessment of the collection environment and controls, and to “dash for cash” while documenting root causes for non-payment through year-end. • Summary: 12-person managed team • Duration: 15 weeks to Dash-for-Cash • Cash Collected: $109M in the first 90 days • Estimated Reserved AR target: $8M • Project Cost: $1.2M • Net Benefit: $6.8M • ROI: 567%
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Meet Our Experts
Contact our service leaders for more information.
Caroline Perez
Principal, Shared Services
cperez@solomonedwards.com
