Recovery Management Model
The project’s main aim was to make better use of information to improve decision-making and thus boost debt recovery rates.
THE CHALLENGE
The project’s main aim was to make better use of information to improve decision-making and thus boost debt recovery rates.
HOW WE HELPED
We drew up and implemented a new smart management system. This involved designing two new systems: reporting and scoring, the former covering suppliers and the latter debt-recovery action. Among other things, the new methodology involved: defining and analysing present debt recovery processes; analysis of the old reporting model; an inventory of management indicators; defining the new reporting process (balanced scorecards, internal and external operations reports); setting up reporting filters (geographical, debt-recovery stage, products, etc.).
Our proposal included: designing a new supplier evaluation and scoring model, the creation of a model for assigning debt-recovery cases; the design of a tool tailored to the new models and tool validation following implementation.
- Implementation of a new reporting model making the impact of debt recovery measures clear to all stakeholders, including suppliers.
- Implementation of a new supplier management and scoring model, which rated suppliers by their debt-recovery performance and which fostered objective comparison between suppliers (who now knew their place in the rankings at any given moment).
- Implementation of a model for assigning debt-recovery cases, by which the best-performing suppliers were given more cases.
RESULTS
Implementation of these reporting and scoring models and adoption of the new approach to assigning cases led to a 10-15% improvement in the overall debt recovery ratio.