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Business Services Case Studies
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Associated Press |
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ROM was retained to assist the internal collection department in the processing of "slow paying" accounts. Working from off site, ROM's staff contacted AP members (the Associated Press is an organization of members) to determine and then assist them with issues effecting payment. A process was set up to address misapplied payments, address disputes and obtain copies of outstanding invoices in a timely manner. Per Scott Johnson, assistant treasurer, "It was as excellent situation for us. We got clear of a lot of volume that was causing us a backlog." We were able to reduce the DSO by 12 days, in effect creating a reduction in DSO levels by 16%. |
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LTV Steel (DIP) |
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ROM was retained by AlixPartners to assume the role of LTV's collection department. ROM was responsible for the collection of all amounts included in the accounts receivable aging of nearly $100 million, with an anticipated recovery of only 35%. We were able to obtain a return of over 146%. |
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Time Warner Cable |
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ROM Was retained by client to set up and run an offsite accounts receivable department to manage the process of customer retention, equipment loss and collections. ROM was able to achieve a 34% reduction in equipment loss, while increasing customer retention by 28%. |
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Cable Installer |
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ROM was retained by the country's largest residential cable installation and maintenance company to manage the reconciliation/collection of an acquired $25 million portfolio, as well as, to assist management in creating a better functioning accounts receivable department. |
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Big Six Accounting Firm |
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ROM was retained to address this firm's inability to reduce its DSO from 101 days. A program was set in place that permitted ROM to work with the partners as well as, the staff to obtain required documentation to speed up the payment cycle. This program resulted in reducing the DSO to 68 days, or a reduction in DSO levels by 33%. This reduction increased cash flow by approximately $1 million a week. |
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International Equipment Manufacturer |
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ROM was retained by an international equipment manufacturer to assist them in reducing the levels of their aged receivables. Under our engagement, we established a new credit and collection policy, created new credit application forms and support documents and set up an off-site customer service/collections call center. Over a 22 month period, ROM achieved the following results:
- Unapplied credits decreased from $1,233,803 to $127,729
- Invoices aged over 360 days decreased from 16% to 2%
- Invoices aged 181-360 days decreased from 8% to 4%
- Invoices aged 91-180 days decreased from 11% to 5.3%
- Invoices aged 61-90 days decreased from 7% to 4%
- Invoices aged from 31-60 days decreased from 4% to 3%
- Invoices aged 1-30 days increased from 25% to 39.3%
- Current invoices increased from 29% to 42.4%
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Receivables Outsource Management LLC
marketing@lowdso.com
5255 North Federal Highway - 3rd Floor
Boca Raton, FL 33487
Tel: (561) 922-3695 Fax: (561) 526-7799
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275 Madison Avenue - 34th Floor
New York, NY 10016
Tel: (561) 922-3695 Fax: (561) 526-7799 |
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| Copyright © 2007 by Receivables Outsource Management LLC All rights reserved. |
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