Client Success in A/R

Business Problem

With the value of a day of sales at around $1 million and facing a cash constrained environment, the client wanted to reduce the Days Sales Outstanding (DSO) metric to improve liquidity and cash flow.  

Resolution

To provide immediate relief for the cash issue, a solution was implemented to reduce the receivables balance cost effectively. Next, a process analysis uncovered the true cause of the stretching DSO elsewhere in the Customer-to-Cash (C2C) pipeline. The process was optimized to address the problem for the long term.

Benefit

DSO was reduced by 2 days and the project was successfully completed in 18 weeks.

 

A/R problems can be caused by issues in other parts of the back office. These processes are connected and require an end-to-end consideration.