Credit Management Software

1. Credit Management Software What opportunities and challenges does it present to the Credit Manager and how to evaluate what to do? A key issue is the Credit Team’s authority and credibility: ICTF Basle

2. The CFO phone call • “Our Key Account, “Acme Global” has just issued a profits warning - sales are down 10%. What is the impact upon us?” • Four possible answers: • I’ll get back to you • I’m sending you a pdf now – it shows you our global position at close of play last night • All outstanding balances, payment history, risk profile and history, credit limit history, decisioning audit trail, etc • I’m sending you the pdf and, as we speak, I am running the new numbers through my risk analysis tool – it shows me that the impact upon Acme’s financial health is xxx • You have already sent the pdf, the analysis and your recommended action - and this is what the CFO is phoning to consult you on ICTF Basle

3. Agenda • Setting the scene • Workshop • Your experience • Buzz groups • Output & summary ICTF Basle

4. Setting the scene • In ICTF we are all committed to Best Practice • That’s why we are here - to share ideas and experience • Most of us have achieved a great deal • Our world is changing and the challenges faced by Credit Managers are increasing: • Some challenges are external – the environment we operate in • But there is a growing internal challenge: • Where’s the beef? • What can credit management deliver to the bottom line? • Reduced costs - increased sales - enhanced competitive edge • This pressure sometimes comes from Corporate HQ • usually focussing upon cost ICTF Basle

5. Setting the scene • We have seen a trend towards Outsourcing or Shared Service Centres (SSCs) • This has been successful for some companies, but for others it has been seen not to work and many have “re-in-sourced” or restructured their SSCs. • This is often because the original process was seen purely as a cost-saving exercise and “the wrong thing was done for the wrong reasons” • An underlying cause of this poor decisioning is often poor availability and quality of management information (MI) ICTF Basle

6. Some thoughts • Akey question for Credit Managers is whether they lead/influence the process, or merely react to it. • Leadership and influence is more strongly achieved by delivery and through knowledge. • visible delivery to the bottom line through reducing costs or positively impacting the sales performance • having excellent “real time” MI at your disposal – putting yourself in a stronger and more authoritative position because you can view and demonstrate how efficient and effective strategies and processes are • If you run large or multiple ledgers the biggest impact upon business performance and MI will be achieved through deploying credit management software ICTF Basle

7. Workshop • Even when enthused by the potential, the software evaluation process is often new territory for the Credit Manager • Where do I start? • Risk software, collections software or both? • How do I evaluate the suppliers? • How do I move this forward with CFO and colleagues? • People in this room have good experience and knowledge • Key ground rule: • We’re here to discuss the Credit Manager’s issues and challenges – not the products ICTF Basle

8. Workshop • Your experience • Buzz groups – 3 topics • What are the challenges and opportunities facing the Credit Manager? • What tips or advice would you offer? • How does the Credit Manager make the case to senior management? • What tips or advice would you offer? • How does the Credit Manager make it happen? • The “Do’s” and the “Do not do’s” ICTF Basle

9. Summary • The successful Credit Managers will be those who step up to the challenge • Credit Managers need and deserve the best tools to do the job • It’s not easy and to get it right you need guidance: • Where do I start? • Risk software, collections software or both? • How do I evaluate the suppliers? • How do I move this forward with CFO and colleagues? ICTF Basle