Case Study: Debt Collection Solution to Improve FMCG Distributor's Cashflow
Business Goal: Improve cash flow through collections
Our client, an FMCG distributor to cafes, restaurants and retailers throughout Australia, needed to improve liquidity. Although sales were increasing, aged debt was placing financial pressure on the business’ cashflow.
The client had over 400 different debtors some of whom were legitimately disputing invoices, some themselves suffering from cashflow issues and others just requiring a push to pay.
We implemented a business intelligence approach to the issue realising we needed more optics to determine which invoices were legitimately being disputed and which debtors required pushes for payment. By reaching out to each debtor via a call campaign we were quickly able to identify legitimate debt and resolve payment disputes. Within three months, the client's debt collection decreased by 50%, exceeding the goals of the internal team. With the aged debt back on track, Swivot has transitioned half the team to tele-sales.
Our team for this project consisted of 2 agents, 1 team leader, workforce management and our onshore account managers.