Overhauling Order to Cash

Entity

Large 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

1. Flaws in the data capture during the order implementation

2. Communication gaps between

- sales teams and delivery teams

- sales teams and billing team

- delivery teams and billing team

- billing team and collections team

3. Inadequate staff in collections team

4. 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 & lt;

• ₹500 Cr. - quick wins in 3 months, overall improvement in 15 months.