Building Credit TogetherOne Team One Goal
‘Credit Management Roadmap to Improvement…’
The Credit Management Journey
‘Building Best In Class Credit’ One Team One Goal
European ConferenceBarcelona 11th – 13th May
2014
Nick King, MICMGroup Credit Director
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Building Credit TogetherOne Team One Goal
HEADS or TAILS
HEADS or TAILS
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Building Credit TogetherOne Team One Goal
Setting the Scene – Refresh from Amsterdam 2013 Conference
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Building Credit TogetherOne Team One Goal
Strong group brands
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Building Credit TogetherOne Team One Goal
Business Overview – 4 Divisions with shared support
GeneralMerchants
ContractsDiv Retail
BUSINESS DIVISIONS
SUPPORT FUNCTIONS
Supply Chain
Finance
HR
IT
Property
Commercial / National Sales
Marketing
Plumbing & Heating
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Building Credit TogetherOne Team One Goal
Key Figures
• £5.2 billion t/o = 2013• Excluding retail = £4.1 Billion• Total Staff = 25,000• Total Branches = 2,000+ (over 19 brands)• 137,000 to 140,000 credit account Customers• Receivables Ledger of > £300 million +• DSO y/e 2013 = 57• 37,000 cheques per month total value of £85 million• 50,000 bacs payment per month value of £154 million
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Building Credit TogetherOne Team One Goal
Organisation – Pre Reorg
Total Credit Services Staff = 253
Bus Unit
Managers
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Building Credit TogetherOne Team One Goal
Vision
Leveraging Technology to Enhance Credit Decisions
Review Processes, Create Good Quality Controls, and
Align Policies and Procedures with Company’s Business
Strategy
Building Credit TogetherOne Team One Goal
My Goals – What Drives Me• Create a credit process that incorporates:
– Consistency (auditors love that) yet flexibility.– Leveraging technology to increase productivity (work smarter – not
harder).– Reinvesting department’s time on more high return for investment
activities.– More than the financial numbers (piecing it all together).– Forcing people out of their comfort zones (do not rest on our laurels).– Developing credit professionals across all of the company’s markets (no
silos).– Challenging everyone to grow (no one stagnates and everyone is
engaged).– More experienced helps less experienced (everyone is part teacher and
part student).– Challenging established ways of thinking (no same old solutions).– A true “team” environment (we all win when we all win together).– Developing easier resource allocation, career path development, back-
filling, and project management capabilities (make being a manager of people easier).
– Transparency to drive understanding and alignment, and to demonstrate Credit adds value (gain respect for the credit profession).
– Delivering on my promise to teach the next generation of credit managers.
Building Credit TogetherOne Team One Goal
TP Group
• Tools• KPI• Reward• Opportunity
• Functionality• Integration• Fit for purpose• Technology (latest)
• System• Policy• Relevance• Control/Audit
• Attitude• Skill Level• Engagement• Knowledge
People Process
Performance
Measurement
IT/Systems
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Building Credit TogetherOne Team One Goal
Perception
• Attitude• Skill Level• Engagement• Knowledge
People
• Complacent• Lack of Investment• Low Engagement• Low to Medium Skill set• Not engaged with peers “credit
industry”• Loyal• Knowledgeable about Industry• Low to medium attrition • Willingness to do well• Made best of a bad job
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Building Credit TogetherOne Team One Goal
Perception
• System• Policy• Relevance• Control/Audit
People
Process
Stale/FragmentedMinimum control/review“Make do”
WorkedUnderstood and Accepted (with region)Integrated into systemDoes the job
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Building Credit TogetherOne Team One Goal
Perception
• Tools• KPI• Reward• Opportunity
Performance
Measurement
OutdatedComplicatedManualNot understood/communicatedNot flexibleReward not seen as beneficialAcceptedDelivered the results
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Building Credit TogetherOne Team One Goal
Perception
• Functionality• Integration• Fit for purpose• Technology (latest)
IT/Systems
Lack controlOld technologyFragmentedPoor reporting capabilityLack of investmentDoes the jobIntegrated into businessHas good collection capabilityOpportunity to invest
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Building Credit TogetherOne Team One Goal
The Credit Management Journey ‘Credit Management Roadmap to Improvement…’
Organisational Alignment
Customer Focus
Consistent MI
Professionalism
One Set of Rules
Process & System Standardisation
Credit Strategies
Operational Excellence
Enablers
Professional &Customer FocussedCredit Management
FragmentedCredit Management
Differentiators
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Building Credit TogetherOne Team One Goal
Organisational Alignment
Customer Focus
Consistent MI
Professionalism
One Set of Rules
Process & System Standardisation
Credit Strategies
Operational Excellence
Enablers
Differentiators
Single Organisation for Credit Management• Group integration• One Team mentality• Single Organisation Archetype • New Risk Department
The Credit Management Journey ‘Credit Management Roadmap to Improvement…’
FragmentedCredit Management
Professional &Customer FocussedCredit Management
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Building Credit TogetherOne Team One Goal
Organisational Alignment
Customer Focus
Consistent MI
Professionalism
One Set of Rules
Process & System Standardisation
Credit Strategies
Operational Excellence
Enablers
Differentiators
One-Credit Learning Programme• Group Credit Management Learning & Development Programme. • Competency frameworks• Professional membership (ICM Group membership)• Career Ladder• Reward Programmes
The Credit Management Journey ‘Credit Management Roadmap to Improvement…’
FragmentedCredit Management
Professional &Customer FocussedCredit Management
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Building Credit TogetherOne Team One Goal
Perception
• Tools• KPI• Reward• Opportunity
• Functionality• Integration• Fit for purpose• Technology (latest)
• System• Policy• Relevance• Control/Audit
• Attitude• Skill Level• Engagement• Knowledge
People Process
Performance
Measurement
IT/Systems
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Building Credit TogetherOne Team One Goal
Review of the current state identified a number of opportunities for improvement
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• One size fits all• Limited customer segmentation
& insight• Reactive v proactive• ‘Collections’ focused• Effectiveness and Efficiency not
optimised
• Long tenured team with little external perspective
• ‘Steady’ culture largely accepting the status quo
• Strong engagement with business lines
• Blurred ownership of core processes
• Tired and outdated• Limited workflow and significant
manual intervention• Inability to implement change• Reporting & MI capabilities very
challenging• Data integrity challenges• Lack of customer focus
• Evolved organically or via acquisition
• Inconsistencies in philosophy, design, execution and customer experience
• High degree of waste & manual intervention e.g. new account opening process
• Lack of historical investment in continuous improvement
Strategy
Technology
Processes
Culture
Building Credit TogetherOne Team One Goal
THEN YOU WILL ALWAYS GET WHAT YOU ALWAYS GOT
IF YOU ALWAYS DO WHAT YOU ALWAYS DID
REALITY CHECK
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Building Credit TogetherOne Team One Goal
‘Building Credit Together’
Achieving Quality in Credit Management
The Credit Management Journey ‘Credit Management Roadmap to Improvement…’
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Building Credit TogetherOne Team One Goal
Organisational Alignment
Customer Focus
Consistent MI
Professionalism
One Set of Rules
Process & System Standardisation
Credit Strategies
Operational Excellence
Enablers
Differentiators
The Credit Management Journey ‘Credit Management Roadmap to Improvement…’
FragmentedCredit Management
Professional &Customer FocussedCredit Management
Start Point
Accreditation covers 6 areas: Credit Policy Compliance Customer Service Personal and Professional Development Performance Measurement Stakeholder Management and Roadmap
Accreditation Requirements
‘Building Credit Together’
Building Credit TogetherOne Team One Goal
QICM - Achieved
Building Credit TogetherOne Team One Goal
Project Odyssey.
Project Odyssey.
What are we doing?•To create a ‘best in class’ trade credit function that is effective and efficient, which helps enable growth across the TP group, whilst proactively managing risks and costs•The program that will consider strategy, technology, process, organisational design and culture•Undertaken a view of what ‘best in class’ looks like
Why is this transformation important?•There is a compelling need to improve the effectiveness and efficiency of the Credit function to deal with future growth without significantly increasing the level of resource•Credit Management will become central to the corporate growth strategy•Effective Working Capital management is increasingly important•Opportunity to create a differentiator in terms of customer service and relations•Improve the skill, culture and engagement of the trade credit function
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Achieving Best in Class
How will we achieve this ‘best in class’ goal?•Maintain business credit management alignment but develop single customer ownership for strategic relationships•Centralise core transactional processes and services to standardise, secure synergies and improve customer service•Maximise the use of technology to automate low value transactional activity and enable self service•Deepen our customer and portfolio insight •Creating a great, engaged and high performing team where colleagues see opportunities to develop their career at TP in the TC function. •There is potential to enhance credit and collections management to drive c. £40m - £50m in sustainable improvements
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Trade Credit vision
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To develop a ‘best in class’ trade credit function that is effective and efficient, which helps enable growth across the TP group, whilst
proactively managing risks and costs
One team, One goal, taking us from Good to Great:
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Our approach involves gaining insight from a range of sources to inform our future state
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Benchmarking
Voice of TC leadership
Voice of customer
Voice of business
External best practice
Technology solutions
Discovery phase Define our ‘to be’ state
• Develop design principals• Business case• Program work streams• Approval to proceed
Implementation
Business engagement is key to success to both inform the future state design and help improve the process and customer experience
In our ‘discovery’ phase we have engaged a number of stakeholders to assess our current state
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Credit Risk Management
Disputes
As is review & TC leadership
Business Reps KPMG External Best Practice
• Inconsistent decisioning• Waste & duplication• Lack of group insight &
metrics• Shared ownership
• Hot topic• Speed & consistency• Improve business
understanding & customer experience
• Variation in acceptance procedures for new clients
• Inconsistent decision
• Centralisation to realise synergies, economies of scale and single point accountability
• Hot topic: Credit limit approval
• Delays in decisioning• Reactive v Proactive
• Hot topic• Level of limit and speed
• Limits often breeched and system doesn’t enable exposure calculation
• Proactive• Level of automation in
decisioning
• Clarity of comms• Customer confusion drives
a large volume of calls into function
• Invoicing is effectively monthly given terms are driven from the end of month
• Clear terms• Due dates• Promote preferred
payment methods
• Typically 30 days however informal credit period extend terms to 67 days
• One size fits all• Limited/no customer
segmentation & insight• Single customer multiple
interaction points with TC
• Top priority to address• No single owner of
customer within TC
• Collections focused on month end/half year rather than daily collections
• Misleading metrics
• Customer segmentation• Rich data insight• Real time metrics with drill
down capability
• Lack of metrics, insight & focus on identifying and eliminating root cause
• Customer dissatisfaction re speed and lack of communication
• Customer & business self service
• Could TC being doing more to resolve?
• Not all disputes captured• In month performance not
monitored
• Centrally owned to ensure focus and single point accountability
• Insight re drivers
• Very manual and greater auto cash allocation could provide large benefit
• Customer & business self service
• Unallocated cash relatively low $4m at month end
• Automated cash allocation technology to streamline function
New accounts
Invoicing
Collections
Terms
Credit Risk
Cash Allocation
Disputes
The following design principals have been developed to shape our future design and drive us
towards leading practice
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Improve effectiveness & efficiency
Enable the business growth
strategy
Protect & strengthen customer
relationship
Maximise use of
technology
Deepen customer &
portfolio insight
Develop engaged &
high performing
team
Future proofed: agile &
scalable
Our future state: what are we looking to deliver?
Organisational design: Maintain business credit management alignment but develop single customer
ownership for strategic relationship Greater divisional focus and ownership Centralise core transactional processes and services to improve
effectiveness, customer experience and clearer accountabilities
Technology Maximise the use of technology to automate low value transactional activity Enable self service for internal & external customer
Data: Rich single source of data that enables real time reporting & Management
information plus insight
Processes Create robust, customer orientated processes e.g. account opening, credit
limit reviews
People: Up skill the team, introduce new capabilities and evolve the culture
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Single customer ownership: Our customers today can have many touch points with the TC
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Nationals
Single Brand
Multi brand
Managed Services
• Managed by specialist teams in TP and PTS/BSS• Single National customer may deal with both teams
• Managed by brand where customer trades
Customer x
TP North City PlumbCCFPTS
• Managed by a number of credit teams• No single accountability within TC
In the current model many customers have multiple points of interaction with the group which drives inefficienes, sub optimal customer service and
enhances risk
In our future state we propose developing much stronger ownership & clarity for
Customer Relationships
Nationals
Managed services
Multi brand customers
Single brand customers
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Strategic relationship & account management
Single customer ownership
Tailored strategies
Single brand, large customers
Tactical relationships Standard Collections
strategies
Increasing caliber of TC
team
Number of accounts Strength of relationship
• We will develop deep strategic relationships with our most valuable customers rather that a ‘one size fits all’ approach.
• Single point customer accountability will be defined and will own the relationship on behalf of the group.
• Nationals, Manager Services will be managed by specialised teams whilst multi brand will be owned by one nominated business, who will own on behalf of the group
The Target Design Model
P&H Division Merchanting Division Contract Division
TP SW TP SECity Plumb’ TP North
Single customer ownership
Account opening
Disputes Insight, MI & Reporting Legal & Recoveries
RiskCash Allocation
TC centralised shared services
BenchmxPTS & F&P CCFKeylineBSS
Bus
ines
s a
lignm
ent
TC s
hare
d se
rvic
esTe
chno
logy
in
frast
ruct
ure
Automated cash allocation
Maximise technology Tailored
Collections strategies
Insight, MI & Reporting
Proactive risk assessment
& management
Org
D
esig
n
StructureCapabilities CultureTraining &
Development GovernancePeople
Self Service
The following programs of work will be required to deliver this future state
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Trade Credit Key Initiatives
IT Capability
MI & Reporting• Portfolio and business MI• Revised KPI’s to drive ‘intra
month’ collections• Generate insight
Collections strategies• Short term effectiveness plans• Longer term optimisation post
system implementation enabling tailored collections strategies
• Optimise channel mix• Redesign statements, invoices
and customer communications• ecommerce strategy: Electronic
EDI’s, Remittance etc.• Eliminate cheques
IT Single Customer ownership• Strategic/multiband customers
have a single group TC relationship
POrganisational structure• Restructure to create clearer
accountability, progression and succession
• Introduce new capabilities
ITP
Centralisation of core processes & services
• Account opening, sales ledger, disputes, MI & reporting, Risk Management, Legal & recoveries
Credit Management IT• Proactive credit management• Risk management at portfolio
level• Redesign credit limit process
Right People, Right Culture• Define TC culture and ways of working• Restructure to create clear accountability,
progression and succession• Recruit top talent
• Deliver improved infrastructure that is agile, scalable and enables proactive management of risk, customer segmentation and CRM
P
P
IT
Enable Self Service IT• Business & customer self service
including online viewing of accounts, invoice, POD retrieval & payments
Enab
lers
The Right People, Right Culture is also critical for our success
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The Right People The Right Culture
• The future state structure has been designed with the following principals in mind:
Up skill Enable progression Clear accountability Ensure succession
• Up skilling the team to create a ‘best in class’ function and ensure emphasis shifts from just ‘debt collection’ to also ‘enabling business growth’
• New capabilities are required including business analysis, process management and improvement. Additional much greater on competencies and attitude
• A number of the new roles will be filled externally
• This structure will create clear successors to the Director role and enable the management team to work across a breath of disciplines and roles
• Building recognised credit management qualifications aligned to QICM
• Despite a strong relationship with the business the current culture of the management team will be a barrier to the success of any change program:
Lack of mutual respect Assuming negative intent Lack of collaboration Lack of managing up
• A culture and ways of working program is being commenced in Q1 2014 in conjunction with HR. The scope will include:
Defining TC culture and ways of working
Defining team interaction models and associated governance
2014 Training and Development program
• Develop an ongoing engagement strategy with business
Trade Credit Director
Credit Manager TP
North
Credit Manager TP
SE
Credit Manager TP
Midlands
Credit Manager TP
SW
Credit Manager BSS
Credit Manager PTS
Credit Manager Keyline
Credit Manager CCF
Credit Manager City
PlumbingRisk Manager
Legal and Recoveries Manager
Assitant to Director
Organisational Structure: The current management structure is too flat and inhibits
progression and succession
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Challenges with current structure
• Too many direct reports (12)• No successor to Director• Lack of progression opportunities within management structure• Core capabilities missing e.g. process improvement, business
analysis and insight • Lack of clear accountability for divisional performance and core
processes e.g. account opening• Blurred reporting lines with inhibits change• Lack of ownership of ‘change agenda’
The proposed leadership structure will up skill the function, introduce new capabilities and
clearer accountabilties
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Director of Trade Credit
Assistant to Director
Senior CM Merchant Division
Credit Manager
Credit Manager
Senior CM P&H
Division
Credit Manager
Senior CM Contracts Division
Credit Manager
Credit Manager
Head of Shared
ServicesCash
allocation & Disputes Manager
MI, Reporting &
insight
Legal and Recoveries Manager
Risk Manager
Account opening
Key changes
• Streamlined structure with reduction in number of directs from 12 to 7
• Clear accountability for divisional performance and stakeholder management whilst retaining dedicated business line credit teams
• Structure enables progression and effective succession planning
• The introduction of a number of new senior roles and new capabilities e.g. business analysis and process management/improvement.
• Centralisation of core processes including sales ledger, account opening, disputes, reporting & insight
• Long term aim is divisional credit teams to be co located
Denotes new role
Denotes up skilling
existing role
Support and Selection Approach
21st Feb 2014 Leading Edge - Change Team Event
24th Feb to 7th Mar 2014 Leading Edge - One to One Coaching
11th - 12th Mar 2014 Development Centre
13th March External Candidates Assessment Centre
28th Mar 2014 Feedback Results
Development Centre
• The transformation program involves up-skilling the team to create a ‘best in class’ function.
• A greater emphasis will be placed on capability and the development centre will provide an objective assessment of your suitability for the new roles. The development centre will include three parts:
Interview Individual Presentation Group Activity
• Everyone will receive feedback from the development centre which will contribute towards development plan.
Centralisation of a number of core processes and service is recommended
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• Currently a number of core processes and services are split across multiple trade credit teams and locations resulting in: variation in procedures, capability, customer outcomes and
experiences Lack of clear accountability resulting in little or no process
improvement Lack of portfolio view of performance Distraction from core collections role
• The ‘voice of the business’ committee was very supportive of centralising these services and a number of them were identified as ‘hot topics’ requiring significant improvement.
Scope of centralised services
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Account openingDisputesCash allocation
Insight & Governance RiskLegal & Recoveries
• Standardise, simplify and automate
• Ownership & maintenance of customer master data
• Data cleanse of master data• Ensure adequate segregation
of duties• Continuous improvement• Account administration
• Dispute process ownership• Reporting & SLA management• Identify key drivers of disputes
and provide insight to enable elimination of root cause
• Development of business level KPI’s
• Clean up of legacy disputes
• Sales ledger and cash allocation process
• Drive automated cash allocation
• Drive strategies to promote online payments, BACS and Direct debits as primary payment methods
• Design and develop MI and reporting for TC, business and branch
• Develop insight that informs Collections strategies
• Process improvement agenda
• Strategy & governance re process ownership, controls, monitoring and guidelines
• Ownership of TC risk strategy & appetite
• Ownership of credit policy and adherence
• Ownership of credit reference relationships and commercials
• Controls and monitoring for all credit limit increase
• Credit terms• Credit insurance
• Recoveries strategy & overall performance
• Legal cases• Group credit application • Personal guarantees• Security• Compliance
Management information, reporting, data and insight
A key business requirement is a single source of data that enables automated, robust and real time reporting to measure past/current performance and inform and improve future performanceScope of work stream includes:A wholesale review of all metrics & management information required by TCLT and businessDevelop a dashboard covering key performance metrics with drill down capability providing portfolio, divisional, business, branch and customer view
• New account, Utlisation, Outstanding's, DSO, weighted average days to collect, Disputes, Risk levels, cash allocation…
Develop internal KPI’s and metrics that focus on intra day collections management rather than the current month end focus
• Educate the team on the impact of collections on working capital and the cost of capital and importance of proactive intra month management rather than reactive end of month focus
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IT Capability: Investment is required in this key enabler
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We aim to implement ‘best in class’ technology solutions spanning collections, risk management and cash allocation:
• Increase sales on credit terms to existing/new customers• Increase overall effectiveness and efficiency• Significantly reduce operating costs• Improve working capital• Motivate and empower Credit teams with best tools and technology• Differentiate our customer experience and gain a competitive advantage
in the marketplace
Collections management
system
Cash Allocation system
Risk management system
Collections system will enable segmentation and tailored collections strategies
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Automation:• Set collections strategies for different customer segments based upon risk and behaviour• Workflow to automate low value transactional activity and manage by exception• Automatically determine most important next step for segment• Flexibility to evolve, test and change collections strategies within the TC function
Targets and Performance:• Target, measure and monitor performance at group, division, business, customer or team
member• Forecast future collections performance to set stretch target
Management information & reporting• Real time robust MI, KPIs and reporting• Drill down capability • Flexible reporting managed within TC function
Improved customer communication:• Automatic customer communications through choice of channels,• Communication with links such as ‘click-to-pay’ ‘click-to-query’• Self service ability enabling TP to be ‘easy to do business with’• Tablet and mobile enabled communications and self service
Query and dispute management• Provide functionality to record, assign and manage queries and disputes including categorisation
of root cause
Risk Management will proactively manage portfolio according to the agreed risk appetite
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Automation:• Automation of a large % of lower value credit risk decisioning• Potentially provide instant in store approval for credit • Proactively identify accounts approaching credit limit and auto uplift, based upon defined scorecards
or flag for manual review• Seasonal limits automatically available• Potential for in store payments resulting in real time credit uplift
High-level view of the risk portfolio• Visibility of individual risk, group aggregated risks, credit team, brand, branch, division, company.
Visibility on screen and drill down capability• Risk categorised based upon agreed TP risk scoring model defined in line with risk appetite• Risk categories updated dynamically as data set and customer behaviour changes
Links to multiple credit reference agency data• Online connections to multiple credit reference agencies• Linking together internal purchasing and payment behaviour to external agencies to inform credit
limits
Management information • Suite of management information and reporting• Full audit trail• Provision of credit approved prospects to sales team
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Maximize efficiency• Dramatically improve the level of auto cash allocation (c50% to >90%) and thus speed up the level
of daily and month end allocations. This is achieved via a system that learns previous manual actions
• Scanning and electronic storage and retrieval of remittance and cheque images. Thus eliminating paper records
• Quick and efficient transaction search facilities and ability to see allocation history• Dramatically reduce unallocated cash position
Improve customer experience• More accurate customer statements and cleaner ledgers• Reduce the number of incoming calls to credit to release held orders for overdue invoices that have
been paid but have not yet been allocated
Management information and control• Full electronic audit trail of all allocation undertaken• Immediate access to up to date accounts to facilitate effective collections • Automated reporting for bank reconciliation • Suite of management information and reports on receivables, payment methods used and cash
allocation performance and staff effectiveness and performance
Cash Allocation system will dramatically increase the level of auto allocation and thus reduce manual
intervention
Collections strategies: The customer base will be segmented and collections strategies will be
evolved on an ongoing basis
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Develop strategy
TestMonitor effectiveness
• Segment customers• Develop strategies
based upon customer risk and behavior
• Manage by exception
• Test alternative channels & contact strategies
• Adopt champion challenger strategy
• Review• Evaluate results,
learn and evolve strategies further
Credit Risk Management needs to undertake a program of work to support our future state
5050
Effectively balance risk and sales
growth
Define risk appetite by business
Redesign credit review
process & implement
SLA’s
Extend credit based upon
risk & margin rather than order value
Implement the right
infrastructure
Proactive credit
risk/limit management
Define and monitor risk exposure at group level
Assess risk of prospect customers
What does this mean for the team and customers?
Business Branches Customers
• Dedicated highly skilled Credit Manager for your Division
• Ownership of board relationship
• Accountable for Divisional TC performance
• Alignment of divisional & credit strategy
• Fostering growth and customer satisfaction
• Well governed processes with consistency of execution & agreed guidelines and SLA’s
• Enable sales growth through proactive extension of credit and greater risk insight
• Robust, real time metrics and data insight to help identify opportunities and risk
• Identify and drive root cause remediation of dispute drivers
• More effective working capital and write off management
• Enhanced management of strategic credit relationships
• Fewer disputes due to EPOD receipting and greater insight into dispute drivers
• Fewer queries from customers re how much do they owe
• Less TC payments taken in store as more customers migrate to online and BACS
• Proactive extension of credit resulting in far fewer accounts on stop and the need to request log numbers to release orders
• Streamlined and robust reporting
• Happier customers!
• Streamlined account opening process with extension of credit real time in branch
• Clarity of communications via invoices and statements i.e. how much do I owe and how do I pay.
• Channel of choice enabling self service for copy invoices, log disputes, make a payment, overall account management
• Proactive extension of credit thus improving experience
• Collections strategies tailored to their behaviour
• A differentiated customer experience as it will be ‘easy to do business with us’
What does success look like?
• Increased Credit Availability• Reduced Bad Debt• Reduced in outstanding disputes and time to
resolve• Reduced overhead cost charge to business• Improved reporting (e.g. Credit utilisation
report)• Enhanced customer retention and satisfaction• Improved Average Days to Pay• Quicker Response on Key Decisions• Increased Margin• Consistency in decision making • A portfolio driven by risk and opportunity• Enhanced moral and engagement of TC team
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During out detailed planning phase we will be looking to
quantify these measures
Trade Credit High Level Roadmap, 2014
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Q1
Detailed planning execution
Define requirements
BC approval
Redesign core processes
Phase 1 org structurePeople work stream
Define approach to single customer ownership
Q4Q3Q2
Phase 2 org structureCulture program
Shared Service
IT work stream
IT developmentRFP & commercials
Credit Proactive credit management
Test
MI & Reporting New reporting & MI
Customer service
Cam Cam
stabilization
Pilot Implement
Short term effectiveness KPMG working capital program
Activity Due Date
RFP released to Bidders 7th February 2014
Bidders required to submit questions by 14th February 2014
Bidders to receive consolidated response to all questions raised in response to RFP
21st February 2014
Closing date for RFP response 28th February 2014Vendor presentations w/c March 17th 2014Preferred Vendor Confirmed 24th March 2014
Commercial & contractual negotiations concluded
25th April 2014
Final decision & award of contract to successful Bidder
2nd May 2014
RFP Timetable
High Level Project Timeline
Year 2014 Year 2015
Apr
May June
July Aug Sept Oct Nov Dec Jan Feb Mar
Contract negotiationsSupplier workshops Agile IT Build/Test/DeliverSupplier Software ConfigurationUser Acceptance TestingUser TrainingPilotGo LiveStabilisationPhase 2 (remaining satellite/brands)
Contract negotiationsSupplier workshops IT BuildSupplier Software ConfigurationUser Acceptance TestingUser TrainingPilotGo LiveStabilisationPhase 2 (remaining satellite/brands)
Cas
h A
lloc8
Eco
sys
tem
Gate Review
“Hard” Go Live
9
30 8
6
27
31Superuser / Pilot users Aug Training contingency
31Selected Brands
96
end Aug
TBC
TBC
30th Nov
Selected phase 1 brands
“Soft” Go Live
Selected phase 1 brands Phase 1 brands
Collections and Risk
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1. The Future State of TP Group Collections and Risk
Building Credit TogetherOne Team One Goal
Challenges
“Nothing is stronger than habit.” (Ovid).
“They always say time changes things, but you actually have to change them yourself.” (A. Warhol).
“Nobody can go back and start a new beginning, but anyone can start today and make a new ending”(Maria Robinson)
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Building Credit TogetherOne Team One Goal
THANK YOUANY QUESTIONS
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Building Credit TogetherOne Team One Goal
Nick King, FACP, MICMGroup Credit Director
E: [email protected] T: 01604 597900M: 07825783777
Contact Details
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