CASE STUDY: YASKAWA AMERICA INC REDUCES DAYS SALES OUTSTANDING AND BAD DEBT WRITE-OFFS WITH IMPROVED COLLECTIONS AND DISPUTE RESOLUTION PROCESSES

Transcription

1 CASE STUDY: YASKAWA AMERICA INC REDUCES DAYS SALES OUTSTANDING AND BAD DEBT WRITE-OFFS WITH IMPROVED COLLECTIONS AND DISPUTE RESOLUTION PROCESSES 5/11/2017 1

2 What We ll Cover About Yaskawa and The Credit Department Business Challenges and Objectives Solution / Implementation of SAP Collections and Dispute Management Expected Results Actual Results Keys to our Success and Wrap-up 2

3 About Yaskawa America Inc Founded: 1915 Sales: $4.0B Associates: 8,246 Headquarters: Kitakyushu, Fukuoka, Japan 78 Subsidiaries and 21 Affiliates operating in 25 countries worldwide Manufacturing plants in 9 countries 3

4 About Yaskawa America Inc. Founded: 1967 Sales: $663 Million Associates: 924 Products: AC Inverter Drives, Servo Amplifiers, Servomotors, Machine Controllers, Motion Controllers and Robotics Industries: Automotive, Building Automation, Semiconductor, Food & Beverage, Packaging, Oil / Gas, Machine Tool, Elevators, Plastics / Rubber, Textile / Fibers, etc. 4

5 Our Customer Base Distributors After Market (service and systems group) OEMs 5

6 Our Credit and Collections Dept. Two Sr. Credit and Collections Analysts Credit and Collections Analyst Cash Application Specialist Disputes Manager >> Reports to Corporate Controller 6

7 Credit and Collections Bill Presentment Regular Mail Fax EDI Payment Options Traditional checks Check by phone On-Line-Bill Pay Credit Card ACH/Wires 7

8 What We ll Cover About Yaskawa and The Credit Department Business Challenges and Objectives Solution / Implementation of SAP Collections and Dispute Management Expected Results - Actual Results Keys to our Success and Wrap-up 8

9 Business Challenges / Drivers OPERATIONAL CHALLENGES (before FSCM / Receivables Management) Inadequate tools to manage collections and disputes Manager s inability to manage queues Monitoring and reporting tools were inadequate Need to automate collections and centralize disputes RISK Ignore small dollars Waste too much time resolving disputes Lack of performance measurements 9

10 Objective of Automating Collections & Disputes DSO Reduction Write-offs Reduction Productivity Gains Dispute Resolution / Deduction Management Improve Customer Experience Employee Morale / Job Satisfaction Increase Performance Recognition / Management Process Standardization & Control 10

11 What We ll Cover About Yaskawa and the Credit Department Business Challenges and Objectives Solution / Implementation of SAP Collections and Dispute Management Expected Results - Actual Results Keys to our Success and Wrap-up 11

12 Our Solution/Implementation Our Solution FSCM / Receivables Management Collections and Dispute Management 12

13 SAP Landscape SAP ECC 6.0 EhP4 MM,PP,SD,WM,FI/CO SAP CRM 7.0 (EhP4) IC, Service / Repair, Sales, SFA SAP SCM 7.0 Demand Planning SAP NetWeaver BW

14 FSCM Collections Management Benefits Easy to learn Flexible Configuration Key Functionality Strategic Collections Prioritization Auto generation of daily work list Generation of resubmission (follow up reminder) Documentation for the customer contact' Auto creation of dispute cases Automatically send mass correspondence 14

15 FSCM Dispute Management Benefits Automatic creation of dispute cases Creation of dispute cases when they arise No time delay between discovering dispute and opening a dispute case Central view of dispute cases Key Functionality Up-to-date information Dispute cases can be created before the actual payment deduction takes place Dispute cases can be created after an invoice has been cleared Manual creation of cases for credit balances (now creates automatically) 15

16 FSCM Implementation Out of the Box Collections and Dispute modules Small enhancements Third-party correspondence packages You do not have to be a programmer Create correspondence on the fly 12 week Implementation Cycle Integration of business partners into FSCM posed the biggest challenge No need to bring in all contacts if using CRM 2 collection profiles, 3 collection strategies 16

17 Added a Correspondence Accelerator Collections Account statement / auto monthly statements Order pending (series of two letters) Past due reminders (series of three letters) Proactive letter (with and without copy of invoice) Final demand Disputes Credit balance and partial credit Deductions denied Document requests Sales tax letters Unclaimed property letters Write off to bad debt Refunds to customers 17

18 Daily Process Worklist A 18

19 FSCM Worklists (Collections) 1919

20 FSCM Customer Account 20

21 FSCM Customer Account 21

22 Correspondence 22

23 FSCM Customer Account 23

24 FSCM Dispute Case 24

25 FSCM Dispute Correspondence Log 25

26 Disputes / Correspondence 26

27 FSCM Dispute Case 27

28 FSCM Dispute Case (cont.) 28

29 FSCM Dispute Case (cont.) 29

30 Create Dispute to Request Write Off to Bad Debt 30

31 Create Manual Dispute from Fbl5n or Worklist 31

32 Dispute Management for Refund Checks 32

33 Go to UDM_Dispute to Find Case 33

34 Dispute Management for Refund Checks 34

35 Dispute Management for Refund Checks 35

36 Before Refund Check is Cut 36

37 Dispute Management for Unclaimed Property 37

38 Dispute Management for Unclaimed Property (cont.) 38

39 What We ll Cover About Yaskawa and The Credit Department Business Challenges and Objectives Solution / Implementation of SAP Collections and Dispute Management Expected Results - Actual Results Keys to our Success and Wrap-up 39

40 Expected Results Lower DSO Decrease in Past Due A/R Collection Effectiveness Interest Expense Savings Write-offs Reduction Dispute Resolution / Deduction Management Process Standardization & Control 40

41 How FSCM Has Helped Us Achieve Desired Results Eliminate time spent on manual, administrative tasks Systematically build work queues (disputes, collection calls) Trigger follow-up actions Automatically send mass correspondence Use Dispute Automation to: Write off bad debt Process refund checks request Capture and comply with Unclaimed Property laws Track shipments with wrong payment terms 41

42 Financial Performance Results DSO =2016=40.8 (5.5 days lower from go live) Percentage Current = 85%-90% CEI % = 85%-89% Write off bad debt = Reduced practically to 0 42

43 What We ll Cover About Yaskawa and The Credit Department Business Challenges and Objectives Solution / Implementation of SAP Collections and Dispute Management Expected Results - Results Keys to our Success and Wrap-up 43

44 FSCM Mission DSO at Yaskawa America, Inc. Commitment from Management Involvement of Stakeholders Work closely with IT Business Processes Focused on customer Make system imperfections opportunities to explore Think outside the box be creative Bonus and Recognition tied to SAP FSCM Success Correspondence Accelerator from 3rd party solution provider 44

45 7 Key Points to Take Home Know your SAP solutions and SAP NetWeaver BW versions Include your team during the blueprint stage as early as possible Dispute Management can be used for credit balances Keep initial implementation simple Enhancements should come later Discuss your daily issues after go live with your team / users Everyone has input / ideas Add a correspondence accelerator to standardize communication Don t take NO for an answer You know your process best! 45

46 Your Turn! How to contact me: Elizabeth Chamorro 46