All logistics service providers position themselves on the market by promoting their products, their solutions and their network: this is the visible part of the iceberg. However, behind the attractive offerings, there is the operations back office, not visible but critical. The company’s back office is the engine or the lifeblood of a logistics service provider’s successful and profitable operation.
The back office – in-house or partly outsourced – may consist of HR, operations, IT, accounting and compliance. It helps to strengthen the infrastructure of a business by implementing and maintaining efficient operations.
Why outsourcing credit control back office operations?
- Your business is growing and it becomes more difficult to cope with increased workload. Due to lack of staff availability, there is more risks that payments are not timely followed.
- Demands to improve cash flow.
- Customers consistently paying outside agreed terms.
- You need to streamline the cash collection and credit control process and want to outsource such functions to get a proactive follow-up of past due accounts.
- You strategically want to dedicate more time and resources to your company’s core business.
- You need to launch a clean-up project – for example during 3 months.
- You are looking for more flexibility especially regarding resources and skills management facing turnover of skilled and trained staff.
- Downsizing the accounting department.
Key benefits of outsourcing credit control to Tokema
- We are logistics people and we know your business.
- Streamlined operations with documented and accurate processes with operations performance being constantly monitored with KPIs.
- Increased cash flow to support your business’s strategy.
- Access to flexible, skilled and experienced credit control resources that are not on your company’s payroll.
- Variable pricing vs. the usual in-house fixed cost model.
How Tokema Back Office services support your credit control operations
Whether you are looking for permanently outsourcing or for a 3-month clean-up project of past due accounts to be achieved quickly and cost-effectively, Tokema will dedicate experienced and available resources in credit control and credit management to your operations.
Clients usually give us direct access into their A/R management system to download aged balanced, launch cash collection email campaigns, print and fax/mail copies of invoices, and include all notes on the handling of each and every account.
We first define the detailed scope of services and the objectives with our client, using our on-boarding check list.
In addition to usual credit control activities, chasing customers for payment and resolving issues, disputes, etc… an escalation process is implemented with the client to fix issues quickly.
We also issue weekly activity reporting where we highlight what was achieve, key issues that need resolution and top priorities/actions of the following week. This report is shared during weekly conference calls with the client to discuss progress and suggested process modifications.
Process modification because – based on our experience – we are immediately embedded in the client’s organisation and very quickly identify process improvement opportunities typically in the following fields:
- Late billing
- Limited established and document processes
- Lack of permanent follow-up and management of the billing, payment and collections activities.
If you are considering to outsource your credit control or need a short term clean-up task force, book your free consultation now and let’s discuss your project!