Creditek™ - Elevating Your Order-to-Cash Strategies

At Creditek™, the consulting unit of Smyyth, we specialize in optimizing order-to-cash processes to enhance accounts receivable performance and drive shareholder value. Two critical downstream issues highlight both the opportunities for improvement and the process errors that reduce net revenues and profits:

  1. Invoice Collections and Cash Flow Effective invoice collection is essential. Issues that are not due to customer payment habits often stem from process errors—both on the seller's side and the customer's side. The key to resolving these issues is to identify the root causes and correct the underlying processes, rather than accepting them as systemic problems which, if not managed, lead to bad debts and credits.
  2. Customer Chargebacks, Claims, and Deductions: In many industries, these issues lead to significant "revenue dilution." Accounts receivable and revenue dilution often result from customer misunderstandings and deductions for discounts, trade promotions, pricing discrepancies, and returns. These areas are prone to errors that typically benefit the customer, leading companies to write off or lose millions of dollars annually.
  3. Fulfillment and Compliance Penalties: Penalties for EDI, shipping late or early, packaging, etc. have become endemic in retail industries, and are a major unplanned cause of profit dilution. Using state of the art, systems  process, and autonomous BOTs can help identify, head off and respond to these charges before they bleed your profits.
  4. A/R Outsourcing (USA based): Our professional teams excel at managing the most demanding outsourcing needs for credit, collections, and deduction management. Whether it’s long-term engagements, interim support, or project-based assignments, we deliver expert, focused, and intensive effort using cutting-edge technology to drive significant improvements. Our fees are entirely performance-based, ensuring that we are genuine partners committed to the success of your engagement.

Our Comprehensive Consulting Process

With our extensive expertise in optimizing strategic and tactical enterprise accounts receivable functions—including credit management, cash application, collections, and deduction management—the Creditek team is exceptionally qualified to develop customized solutions tailored to your specific challenges. Discover how Creditek™ can transform your order-to-cash processes and unlock greater value for your business.

The Creditek team harnesses the professional expertise of Smyyth’s seasoned staff and the advanced capabilities of Carixa technology. With over forty years of experience serving Fortune 1000 and mid-market companies in manufacturing, consumer goods, and pharmaceuticals, we bring deep industry knowledge and technical prowess to every engagement. Our consultants follow a structured process to identify opportunities for improving accounts receivable (A/R), collections, and deduction performance. This comprehensive process involves several key steps to ensure optimal results.

  1. Initial Assessment and Data Collection
  • Stakeholder Interviews:  Consultants begin by conducting interviews with key stakeholders including finance, sales, and customer service teams to understand current processes, pain points, and goals.
  • Data Analysis:  They collect and analyze relevant data such as aging reports, collection rates, write-offs, and deduction trends to identify patterns and anomalies.
  • Process Mapping:  Mapping out the existing A/R and collections processes helps in visualizing the workflow and identifying bottlenecks and inefficiencies.
  1. Benchmarking
  • Internal Benchmarking:  Compare current A/R performance metrics, including DSO, DDO, BPAR, etc.,  against historical data within the company to identify declines or improvements.
  • External Benchmarking:  Compare the company's metrics against industry standards or best practices to understand where the company stands relative to its peers.
  1. Identification of Issues and Root Causes
  • Gap Analysis:  Identify gaps between current practices and best practices or desired performance levels.
  • Root Cause Analysis:  Use techniques such as the "5 Whys" or fishbone diagrams to pinpoint the underlying causes of issues in A/R and collections.
  1. Opportunity Identification
  • Process Optimization:  Look for opportunities to streamline processes, eliminate redundancies, and automate manual tasks.
  • Policy Review:  Evaluate and update credit policies, payment terms, and collection strategies to ensure they are aligned with best practices.
  • Technology Utilization:  Assess the use of current technology and identify opportunities to leverage software solutions like ERP systems, A/R automation tools, and analytics platforms.
  1. Solution Design and Recommendation
  • Strategy Development:  Develop tailored strategies to address identified issues, such as improved invoicing practices, enhanced credit risk management, and proactive collection tactics.
  • Tool Implementation:  Recommend and assist in the implementation of new tools and technologies to automate and enhance the A/R process.
  • Training and Development:  Provide training for staff on new processes, tools, and best practices to ensure smooth adoption.
  1. Implementation and Change Management
  • Project Management:  Oversee the implementation of recommended changes, ensuring that the project stays on track and within budget.
  • Change Management:  Develop a change management plan to address potential resistance and ensure buy-in from all stakeholders.
  1. Monitoring and Continuous Improvement
  • Performance Metrics:  Establish key performance indicators (KPIs) to monitor the effectiveness of implemented changes.
  • Feedback Loops:  Set up regular review meetings to assess performance, gather feedback, and make necessary adjustments.
  • Continuous Improvement:  Foster a culture of continuous improvement by encouraging ongoing evaluation and refinement of A/R processes.
  1. Reporting and Documentation
  • Regular Reporting:  Provide detailed reports on the progress and outcomes of the implemented changes.
  • Documentation:  Ensure all processes, policies, and procedures are thoroughly documented for future reference and training purposes.

Creditek's experienced order-to-cash practitioners, using a structured approach, can assist organizations in optimizing their accounts receivable, improve collection efficiency, and minimize deduction-related losses, ultimately enhancing overall financial performance.  CLICK THE "START A CONVERSATION" BUTTON TO SCHEDULE AN INITIAL CONSULTATION.

Generic filters