European Conference
Barcelona 11th – 13th May 2014
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
‘Building Best In Class Credit’
One Team One Goal
Nick King, MICM
Group Credit Director
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Building Credit Together
One Team One Goal
HEADS or TAILS
HEADS
or
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TAILS
Building Credit Together
One Team One Goal
Setting the Scene –
Refresh from Amsterdam 2013 Conference
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Building Credit Together
One Team One Goal
Strong group brands
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Building Credit Together
One Team One Goal
Business Overview – 4 Divisions with shared support
BUSINESS DIVISIONS
General
Merchants
Contracts
Div
Plumbing
& Heating
SUPPORT FUNCTIONS
Retail
Marketing
Commercial /
National Sales
Supply Chain
Finance
HR
IT
Property
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Building Credit Together
One Team One Goal
Key Figures
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£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 Together
One Team One Goal
Organisation – Pre Reorg
Bus Unit
Managers
Total Credit Services Staff = 253
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Building Credit Together
One 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 Together
One Team One Goal
My Goals – What Drives Me
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Create a credit process that incorporates:
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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 Together
One Team One Goal
TP Group
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Attitude
Skill Level
Engagement
Knowledge
People
Process
IT/Systems
Performance
Measurement
Functionality
Integration
Fit for purpose
Technology (latest)
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System
Policy
Relevance
Control/Audit
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Tools
KPI
Reward
Opportunity
Building Credit Together
One Team One Goal
Perception
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Attitude
Skill Level
Engagement
Knowledge
People
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Complacent
Lack of Investment
Low Engagement
Low to Medium Skill set
Not engaged with peers “credit industry”
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Loyal
Knowledgeable about Industry
Low to medium attrition
Willingness to do well
Made best of a bad job
Building Credit Together
One Team One Goal
Perception
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Stale/
Fragmented
Minimum control/review
“Make do”
System
Policy
Relevance
Control/Audit
Process
Worked
Understood and Accepted (with region)
Integrated into system
Does the job
P
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Building Credit Together
One Team One Goal
Perception
Outdated
Complicated
Manual
Not understood/communicated
Not flexible
Reward not seen as beneficial
Accepted
Delivered the results
Performance
Measurement
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Tools
KPI
Reward
Opportunity
Building Credit Together
One Team One Goal
Perception
Lack control
Old technology
Fragmented
Poor reporting capability
Lack of investment
Does the job
Integrated into business
Has good collection capability
Opportunity to invest
IT/Systems
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Functionality
Integration
Fit for purpose
Technology (latest)
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Building Credit Together
One Team One Goal
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
Professional &
Customer Focussed
Credit Management
Differentiators
Customer Focus
Credit Strategies
Operational Excellence
Consistent MI
Professionalism
Process & System Standardisation
One Set of Rules
Enablers
Organisational Alignment
Fragmented
Credit Management
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Building Credit Together
One Team One Goal
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
Professional &
Customer Focussed
Credit Management
Differentiators
Customer Focus
Credit Strategies
Operational Excellence
Enablers
Consistent MI
Professionalism
Process & System Standardisation
One Set of Rules
Organisational Alignment
Fragmented
Credit Management
Single Organisation for Credit Management
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Group integration
One Team mentality
Single Organisation Archetype
New Risk Department
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Building Credit Together
One Team One Goal
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
Professional &
Customer Focussed
Credit Management
Differentiators
Customer Focus
Credit Strategies
Operational Excellence
Enablers
Consistent MI
Professionalism
Process & System Standardisation
One Set of Rules
Organisational Alignment
Fragmented
Credit Management
One-Credit Learning Programme
• Group Credit Management Learning & Development Programme.
• Competency frameworks
• Professional membership (ICM Group membership)
• Career Ladder
• Reward Programmes
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Building Credit Together
One Team One Goal
Perception
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Attitude
Skill Level
Engagement
Knowledge
People
Process
IT/Systems
Performance
Measurement
Functionality
Integration
Fit for purpose
Technology (latest)
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System
Policy
Relevance
Control/Audit
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Tools
KPI
Reward
Opportunity
Building Credit Together
One Team One Goal
Review of the current state identified a number of
opportunities for improvement
Strategy
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One size fits all
Limited customer segmentation &
insight
Reactive v proactive
‘Collections’ focused
Effectiveness and Efficiency not
optimised
Processes
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Culture
Technology
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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
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Long tenured team with little external
perspective
‘Steady’ culture largely accepting the
status quo
Strong engagement with business
lines
Blurred ownership of core processes
Building Credit Together 19
One Team One Goal
REALITY CHECK
IF YOU ALWAYS DO WHAT YOU
ALWAYS DID
THEN YOU WILL ALWAYS GET WHAT YOU
ALWAYS GOT
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Building Credit Together
One Team One Goal
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
Achieving Quality in Credit Management
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Building Credit Together
One Team One Goal
The Credit Management Journey
‘Credit Management Roadmap to Improvement…’
Professional &
Customer Focussed
Credit Management
Differentiators
Customer Focus
Credit Strategies
Operational Excellence
Enablers
Consistent MI
Professionalism
Process & System Standardisation
Start Point
One Set of Rules
Organisational Alignment
Fragmented
Credit Management
Building Credit Together
One Team One Goal
Accreditation Requirements
 Accreditation covers 6 areas:
 Credit Policy
 Compliance
 Customer Service
 Personal and Professional Development
 Performance Measurement
 Stakeholder Management and Roadmap
QICM - Achieved
Building Credit Together
One Team One Goal
Project Odyssey.
Building Credit Together
One Team One Goal
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
One team, One goal, taking us from Good to Great:
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
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Our approach involves gaining insight from a
range of sources to inform our future state
Define our ‘to be’ state
Discovery phase
Implementation
Benchmarking
Voice of TC leadership
Voice of customer
Voice of business
External best practice
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Develop design principals
Business case
Program work streams
Approval to proceed
Technology solutions
Business engagement is key to success to both inform the future
state design and help improve the process and customer experience
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In our ‘discovery’ phase we have engaged a number
of stakeholders to assess our current state
As is review &
TC leadership
New accounts
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Credit Risk
Credit Risk
Management
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Invoicing
Terms
Collections
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Disputes
Disputes
Cash Allocation
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Business Reps
KPMG
Inconsistent decisioning
Waste & duplication
Lack of group insight &
metrics
Shared ownership
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Hot topic
Speed & consistency
Improve business
understanding & customer
experience
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Hot topic: Credit limit
approval
Delays in decisioning
Reactive v Proactive
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Hot topic
Level of limit and speed
Clarity of comms
Customer confusion drives
a large volume of calls into
function
One size fits all
Limited/no customer
segmentation & insight
Single customer multiple
interaction points with TC
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Lack of metrics, insight &
focus on identifying and
eliminating root cause
Customer dissatisfaction re
speed and lack of
communication
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Very manual and greater
auto cash allocation could
provide large benefit
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Top priority to address
No single owner of
customer within TC
Variation in acceptance
procedures for new clients
Inconsistent decision
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Centralisation to realise
synergies, economies of
scale and single point
accountability
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Limits often breeched and
system doesn’t enable
exposure calculation
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Proactive
Level of automation in
decisioning
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Invoicing is effectively
monthly given terms are
driven from the end of
month
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Clear terms
Due dates
Promote preferred
payment methods
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Typically 30 days however
informal credit period
extend terms to 67 days
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Collections focused on
month end/half year rather
than daily collections
Misleading metrics
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Customer segmentation
Rich data insight
Real time metrics with drill
down capability
Not all disputes captured
In month performance not
monitored
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Centrally owned to ensure
focus and single point
accountability
Insight re drivers
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External Best
Practice
Customer & business self
service
Could TC being doing
more to resolve?
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Customer & business self
service
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Unallocated cash relatively
low $4m at month end
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Automated cash allocation
technology to streamline
function
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The following design principals have been
developed to shape our future design and drive us
towards leading practice
Improve
effectiveness
& efficiency
Future
proofed:
agile &
scalable
Enable the
business
growth
strategy
Develop
engaged &
high
performing
team
Protect &
strengthen
customer
relationship
Deepen
customer &
portfolio
insight
Maximise
use of
technology
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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
Nationals
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Managed by specialist teams in TP and PTS/BSS
Single National customer may deal with both teams
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Managed Services
Managed by a number of credit teams
No single accountability within TC
Customer x
Multi brand
Single Brand
TP North
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PTS
CCF
City Plumb
Managed by brand where customer trades
In the current model many customers have multiple points of interaction with
the group which drives inefficienes, sub optimal customer service and
enhances risk
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In our future state we propose developing
much stronger ownership & clarity for
Customer Relationships
Managed services
Multi brand customers
Single brand, large
customers
Single brand
customers
Tactical relationships
Standard Collections
strategies
Number of accounts
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Strategic relationship &
account management
Single customer
ownership
Tailored strategies
Increasing caliber of TC
team
Nationals
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
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Org
Design
Technology
infrastructure
TC shared
services
Business
alignment
The Target Design Model
P&H Division
City Plumb’
Merchanting Division
PTS & F&P
TP SW
TP SE
TP North
Benchmx
Contract Division
BSS
Keyline
CCF
Single customer ownership
TC centralised shared services
Account opening
Cash Allocation
Risk
Disputes
Insight, MI & Reporting
Legal & Recoveries
Maximise technology
Automated
cash allocation
Capabilities
Tailored
Collections
strategies
Structure
Insight, MI &
Reporting
People
Proactive risk
assessment
& management
Culture
Training &
Development
Self Service
Governance
The following programs of work will be
required to deliver this future state
MI & Reporting
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Portfolio and business MI
Revised KPI’s to drive ‘intra
month’ collections
Generate insight
IT
P
Centralisation of core P
processes & services
• Account opening, sales ledger,
disputes, MI & reporting, Risk
Management, Legal & recoveries
Enable Self Service IT
Enablers
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Business & customer self service
including online viewing of
accounts, invoice, POD retrieval
& payments
Collections strategies IT
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Short term effectiveness plans P
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
Trade Credit
Key Initiatives
IT Capability
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Deliver improved infrastructure that is agile, scalable
and enables proactive management of risk, customer
segmentation and CRM
IT
Single Customer ownership
• Strategic/multiband customers
have a single group TC
relationship
Credit Management IT
• Proactive credit management
• Risk management at portfolio
level
• Redesign credit limit process
Organisational structure P
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Restructure to create clearer
accountability, progression and
succession
Introduce new capabilities
Right People, Right Culture
• Define TC culture and ways of working
• Restructure to create clear accountability,
progression and succession
• Recruit top talent
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The Right People, Right Culture is also
critical for our success
The Right People
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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
The Right Culture
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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
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Organisational Structure: The current
management structure is too flat and inhibits
progression and succession
Trade Credit
Director
Assitant to
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
Plumbing
Risk Manager
Legal and
Recoveries
Manager
Challenges with current structure
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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’
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The proposed leadership structure will up skill
the function, introduce new capabilities and
clearer accountabilties
Key changes
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Director of
Trade
Credit
Assistant to
Director
Senior CM
Merchant
Division
Senior CM
P&H
Division
Credit
Manager
Credit
Manager
Credit
Manager
Senior CM
Contracts
Division
Credit
Manager
Credit
Manager
Head of
Legal and
Shared
Recoveries
Services
Manager
Cash
allocation &
Disputes
Manager
MI,
Reporting &
insight
Risk
Manager
Account
opening
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Denotes
new role
Denotes up
skilling
existing role
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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
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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
• 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.
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Scope of centralised services
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Sales ledger and cash
allocation process
Drive automated cash
allocation
Drive strategies to promote
online payments, BACS and
Direct debits as primary
payment methods
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• 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
Legal & Recoveries
Insight & Governance
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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
Account opening
Disputes
Cash allocation
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Recoveries strategy & overall
performance
Legal cases
Group credit application
Personal guarantees
Security
Compliance
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Standardise, simplify and
automate
Ownership & maintenance of
customer master data
Data cleanse of master data
Ensure adequate segregation
of duties
Continuous improvement
Account administration
Risk
• 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
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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 performance
Scope of work stream includes:
A wholesale review of all metrics & management information required by
TCLT and business
Develop a dashboard covering key performance metrics with drill down
capability providing portfolio, divisional, business, branch and customer view
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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
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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
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
Risk management
system
Cash Allocation
system
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Collections system will enable segmentation and
tailored collections strategies
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
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Risk Management will proactively manage portfolio
according to the agreed risk appetite
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
47
Cash Allocation system will dramatically increase
the level of auto allocation and thus reduce manual
intervention
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
48
Collections strategies: The customer base will be
segmented and collections strategies will be
evolved on an ongoing basis
Develop
strategy
• Review
• Evaluate results,
learn and evolve
strategies further
Monitor
effectiveness
• Segment customers
• Develop strategies
based upon customer
risk and behavior
• Manage by exception
Test
• Test alternative channels &
contact strategies
• Adopt champion
challenger strategy
49
Credit Risk Management needs to undertake
a program of work to support our future state
Define risk
appetite by
business
Redesign
credit
review
process &
implement
SLA’s
Assess risk
of prospect
customers
Define and
monitor risk
exposure at
group level
Effectively
balance risk
and sales
growth
Proactive
credit
risk/limit
management
Extend credit
based upon
risk & margin
rather than
order value
Implement
the right
infrastructure
50
What does this mean for the team and
customers?
Business
• 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
Customers
Branches
•
•
•
•
•
•
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
During out
detailed planning
phase we will be
looking to quantify
these measures
52
Trade Credit High Level Roadmap,
2014
Q1
People
work stream
Q2
IT
work stream
Culture program
Phase 1 org structure
Cam
BC approval
Phase 2 org structure
Cam
RFP & commercials
Shared
Service
Detailed planning execution
Credit
Redesign core processes
MI &
Reporting
Define requirements
Customer
service
Define approach to single
customer ownership
Short term
effectiveness
Q4
Q3
IT development
Test
stabilization
Proactive credit management
New reporting & MI
Pilot
Implement
KPMG working capital program
53
RFP Timetable
Activity
Due Date
RFP released to Bidders
7th February 2014
Bidders required to submit questions by
14th February 2014
Bidders to receive consolidated response 21st February 2014
to all questions raised in response to
RFP
Closing date for RFP response
28th February 2014
Vendor presentations
w/c March 17th 2014
Preferred Vendor Confirmed
24th March 2014
Commercial & contractual negotiations
concluded
25th April 2014
Final decision & award of contract to
successful Bidder
2nd May 2014
Gate Review
“Soft” Go Live
High Level Project Timeline
“Hard” Go Live
Year 2014
Cash Alloc8
Contract negotiations
Supplier workshops
Agile IT Build/Test/Deliver
Supplier Software Configuration
User Acceptance Testing
User Training
Pilot
Go Live
Stabilisation
Phase 2 (remaining satellite/brands)
Eco system
Ap
r
Contract negotiations
Supplier workshops
IT Build
Supplier Software Configuration
User Acceptance Testing
User Training
Pilot
Go Live
Stabilisation
Phase 2 (remaining satellite/brands)
May
Jun
e
July
Year 2015
Aug
Sept
Oct
Nov
Dec
Jan
Feb
9
30
8
6
27
Superuser / Pilot users
31
31
Aug Training contingency
Selected Brands
end Aug
9
6
TBC
TBC
Selected phase 1 brands
Selected phase 1 brands
30th Nov
Phase 1 brands
Mar
Collections and Risk
1. The Future State of TP Group Collections and Risk
56
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)
57
Building Credit Together
One Team One Goal
THANK YOU
ANY QUESTIONS
Building Credit Together
One Team One Goal
58
Contact Details
Nick King, FACP, MICM
Group Credit Director
E: nick.king@travisperkins.co.uk
T: 01604 597900
M: 07825783777
59
Building Credit Together
One Team One Goal