Overhauling Order to Cash

Entity

ELarge player in Global Telecom Space

Problem Statement

Mounting receivables - about ₹ 1000 Cr. and swelling by days and increasing customer dis-satisfaction due to inaccurate billing.

Objective

Arrest the spurt in receivables, improve collections, reduce customer dis-satisfaction.

Solution/Approach

-Deep dive into the root causes impacting the receivables, understand the flaws in the system and processes, re-engineer the Order to Cash processes, implement the changes, monitor the processes post intervention.

Key Findings

• Flaws in the data capture during the order implementation
• Communication gaps between
  • - sales teams and delivery teams
  • - sales teams and billing team
  • - delivery teams and billing team
  • - billing team and collections team
• Inadequate staff in collections team
• Lack of credit control policies / processes

Key changes implemented

• Policy changes across the order to cash cycle
• Process change/tightening across order to cash cycle
• Addition of tools to automate parts of the processes
• People augmentation and training
• Introduction of metrics and measurements
• Incentive mechanism for superior performances.

Results

• Consistency in delivery
• Consistency in billing processes
• Arrest in receivables swelling and over a period of time improvements in month on month collections
• Improvement in customer satisfaction on the billing process
• Reduction in overall receivables to
• ₹500 Cr. - quick wins in 3 months, overall improvement in 15 months.