Lindorff’s ‘Invoice service’ now available for the Dutch market! GERARD LOOIJEN & VESA PELTOLA
Professional. Customer-oriented. Performance-oriented. Caring. This presentation is solely for the use of Lindorff Group and companies associated with Lindorff Group. No part of it may be circulated, quoted or reproduced for distribution without prior written approval from Lindorff Group. This material was used during an oral presentation; it is not a complete record of the discussion.
Lindorff Groep 115 jaar historie: Opgericht in 1898 2012 Omzet : € 500 miljoen 50/50 provisiebasis / koopportefeuilles 3.000 medewerkers in 11 Europese landen Feiten • Assets under Management eind 2012: € 3mrd • Actieve dossiers eind 2012: 650.000 • 250 medewerkers • Klanttevredenheid 7.2 • Debiteurentevredenheid 6.6 Reputatie management • 300-400 debtor surveys per dag • Klacht-% bij de NVI over Lindorff: 0.02%
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Wat bieden we onze klanten….. Information services Krediet Informatie
Op basis van provisie
Invoice/Web invoice Facturering
Pre-legal collections
Legal collections
Aanmaningen
Betalingsregelingen
Debiteurenbeheer
Scoring modellen Ad hoc analysis
Uitwinnen zekerheden Juridische trajecten
Surveillance
Monitoren van oude vorderingen Revitaliseren van oude vorderingen
Winstdelings Model Kopen van vorderingen
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Kopen van vorderingen
Kopen van verse vorderingen met achterstand
Kopen van oude vorderingen met achterstand
Herkent u zich in… 1.
De debiteurenadministratie vraagt meer van uw tijd dan u zou wensen….
2.
De kosten van het facturatieproces zijn een groot mysterie….
3.
Rapportages zijn lastig te produceren….
4.
De overgang naar e-invoicing of SEPA lijkt complex en tijdverslindend….
5.
Klanten kunnen de afdeling debiteurenbeheer niet bereiken tijdens de lunch of op andere “ongelegen” momenten….
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6.
U zou de lay out van facturen graag aanpassen, maar….
7.
Als ik nu eens persoonsgericht kon adverteren op de factuur….
© Lindorff Group AB. All rights reserved.
Introduction to Lindorff Invoicing Service
Head Product Management Lindorff Group 10 years experience in automating and streamlining invoicing services Replicating Lindorff success stories from Finland and Norway to Netherlands Best man to share the experience of a life customer
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© Lindorff Group AB. All rights reserved.
Lindorff’s Invoicing service Success story of cooperation between Ramirent rental company and Lindorff
Lindorff Invoicing’s service 1.
Accounts Receivable Management service for companies sending large numbers of invoices to both consumers and businesses
2.
Includes everything you need in order to be in control of your accounts receivables: •
Sending invoices, reminders and debt collection letters through needed channels
•
Sales ledger management
•
Customer service in relation to payments
•
Comprehensive reporting regarding your accounts receivables
•
WebPortal with direct view of your sales ledger status
•
Personal Service Agent
3.
Implementation with experience obtained from hundreds of projects
4.
We also take in to account, challenges connected with outsourcing
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How does Lindorff’s Invoice service work? Monetary transactions
CLIENT
Remittance
Invoicing data PORTAL Client Service
Payment data BANK
SALES LEDGER Posting invoices and credit invoices Posting payments Settlements & Reconciliations
Reminder Collection
Paper eInvoice E-mail SMS
A R C H I V E
Customer Service PORTAL
PAYER
Monetary transactions
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Payment documents
Our co-operation with Ramirent Finland
Etunimi Sukunimi, päiväys
Professional. Customer-oriented. Performance-oriented. Caring. This presentation is solely for the use of Lindorff Group and companies associated with Lindorff Group. No part of it may be circulated, quoted or reproduced for distribution without prior written approval from Lindorff Group. This material was used during an oral presentation; it is not a complete record of the discussion.
About the study and its execution The study’s main question of interest was: “What measurable impacts has Lindorff’s service brought Ramirent?” The study was conducted by an objective third party, Capacent management consultancy, during the spring of 2013 Quantitative and qualitative aspects of the cooperation were analyzed consisting of interviews of key personnel in sales and finance department and a rigorous data analysis The data crunching focused in figuring out the value of Lindorff’s accounts receivable management service by analyzing 3 years of Ramirent Finland’s customer invoices before and 3 years after the launch of the co-operation with Lindorff E.g. analysis showing changes in payment history, turnaround and overdue structure by customer group
About Capacent Capacent is management consulting - the Nordic way. The Nordic way means a no-nonsense, all-the way, hands-on, pragmatic mindset and approach. This is our way to deliver value and results to our clients. We deliver results, not recommendations. We truly differentiate ourselves from other consulting firms through our way of managing change – it’s all about execution. We guarantee results and we are ready to tie our fee to the value generated. Our track record is exceptional.
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Background of the co-operation Co-operation between Lindorff and Ramirent was established originally in the 1980’s. For a short period of time in the beginning of 2000’s the collection process was done by a competitor. However in year 2009 as a result of discussions with the financial management of Ramirent, partnership with Lindorff was taken to a new level. Accounts receivables management and related customer service was outsourced gradually to Lindorff during 2009-2010. Outsourced operations
Background to outsourcing:
Managing and transfer of billing information
Accounts receivables management
Invoicing customer service
Reminders and collection
Ramirent Finland business operations expanded rapidly in the beginning of 2000’s. At the end of the decade finance department encountered challenges handling the grown business volumes Once a month inquiries and clarifications of invoices and credit notes jammed the finance department creating a bottle neck - obvious need for process quality improvements Financial management faced a situation whether to enhance Ramirent’s internal resources or to outsource the process
Outsourcing goals: Standardize the invoicing, reminder and collection processes Improve customer service quality Streamline demand and volume fluctuations Improve customer payment behavior
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Source: Capacent 2013. Independent survey concerning benefits of Lindorff services for Ramirent Finland Oy © Lindorff Group AB. All rights reserved.
Outsourcing value Qualified invoicing customer service Lindorff customer service handles around 6500 contacts annually Scalable customer service resources has improved flexibility of Ramirent´s internal operations Enables customizing the service for specific client groups
Outsourcing the resource need Maintenance of current service level internally would require at least 20 – 40% increase of human resources
Improved customer service quality
+ 20 – 40% resource increase
Improved accounts receivables turnaround Efficient receivables management process has improved customer payment behavior and Ramirent´s average accounts receivables overdue days decreased with one day having a direct impact on cash flow of the company The structure of overdue accounts receivables has improved significantly as well as the payment behavior among all customer groups resulting in decreased level of credit losses.
Reduced working capital ~ 400 Keur
Standardized invoicing process Standardized and efficient receivables management process released Ramirent’s human resources to focus more on monitoring customer payment behavior and executing proactive measures. This has also had an impact on the improved receivables turnaround. Investing freed up time for exploring the reasons behind the large amount of credit notes have resulted in decreasing the amount credit notes significantly and hence released time equaling one full-time equivalent (FTE).
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Source: Capacent 2013. Independent survey concerning benefits of Lindorff services for Ramirent Finland Oy © Lindorff Group AB. All rights reserved.
Released resources
Examples of the results:
Lindorff has improved the accounts receivables management process and the quality of the outstanding receivables Before
Jan’07 - May’10
less than 1 29%
1-3 45%
After
Nov’09 - Apr’13
4-13 17%
less than 1 53%
1-3 23% 4-13 16%
Significant improvement especially among the consumer segment’s receivables, as the average number of days overdue of outstanding receivables has decreased from 8 to 4 days overdue.
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Source: Capacent 2013. Independent survey concerning benefits of Lindorff services for Ramirent Finland Oy © Lindorff Group AB. All rights reserved.
Examples of the results: Lindorff receivables management service has improved the structure of overdue accounts receivables Overdue receivables remained at the level of 10 % out of total outstanding receivables during the research period under review. After establishment of the Lindorff invoicing service the relative amount of receivables overdue for more than 30 days has decreased from over 40 % to under 15 % of the total amount of overdue AR.
Decreased amount of more than 30 days overdue receivables
After outsourcing the invoicing customer service and collection management to Lindorff the structure of overdue receivables has significantly recovered and the proportion of more than 30 days overdue receivables has decreased with 77 % from the peak level before outsourcing
Credit loss reduction
Decreased credit losses
Previously the overdue AR structure was emphasized to aged overdue causing higher credit losses. After establishment of Lindorff’s A/R and collection services the overdue structure has improved resulting in reduced level of credit losses.
Improved turnover of aged accounts receivables in all client groups Turnover of outstanding accounts receivables in days has improved 22,5% in all client groups regardless of the customer size during the comparison period Client group specific level of improvement in turnover of aged receivables is between 24% – 41%
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Source: Capacent 2013. Independent survey concerning benefits of Lindorff services for Ramirent Finland Oy © Lindorff Group AB. All rights reserved.
Turnover of aged accounts receivables -22,5 %
Examples of the results:
Addition of human resources 20 -40 % turned to reduction of required human resources with 30 %*
Before Outsourcing Number of customer contacts focused to a certain time of a month overloading the finance department Overload of the customer service drew attention away from critical functions of the finance department, such as the credit management process Management was challenged to find staff during sick leaves and holidays Stressful working environment for employees Finance department was not able to meet the monthly requirements because of the constantly varying demand
After Outsourcing Scalable to changes in demand Excellent utility rate and long service hours of the invoicing customer service Outsourcing of the routine tasks has priorised the finance resources to more value adding operation like credit management and service of the key customers Flexible human resource management with scalable resources Fixed cost for ICT investments, updates and support
Future ICT-system investments under consideration
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*Achieving current service level would have required an increase of internal invoicing and receivables management resources with 20-40%, outsourcing of services reduced resources with 30 %. Source: Capacent 2013. Independent survey concerning benefits of Lindorff services for Ramirent Finland Oy © Lindorff Group AB. All rights reserved.
Wrap up
By Gerard Looijen
Uw voordeel binnen twee weken inzichtelijk! Workshop* met betrekking tot de voordelen van het outsourcen van uw facturatieproces: 1.
Twee keer een workshop van ongeveer 2 uur per workshop.
2.
In de twee workshops wordt uw uw huidige credit managementproces in kaart gebracht.
3.
U ontvangt een rapport met de voordelen voor uw organisatie wanneer u uw facturatieproces aan Lindorff uitbesteedt.
4.
Het rapport verkrijgt u twee weken na de eerste workshop en bevat een offer m.b.t. Lindorff invoicing solution
5.
Plan uw workshop bij Carlijn Hofland, of laat uw visitekaartje in onze stand (7) achter en wij bellen u na de beurs!
* “Uw inbreng is nodig om het verslag en ons aanbod te genereren. 17
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Hoe gaan we verder? LINDORFF’S BENEFIT CALCULATION M.B.T. HET OUTSOURCEN VAN UW FACTURATIEPROCES
1. VOORBEREIDINGEN
Instructies m.b.t. de voorbereidingen
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© Lindorff Group AB. All rights reserved.
2. WORKSHOPS
Open vragen
3. PRESENTATIE M.B.T. DE BENEFIT CALCULATION
2 weken
Definitief rapport Offer
4. OVEREENKOMST
Weet u nog…… 1.
De debiteurenadministratie vraagt meer van uw tijd dan u zou wensen….
2.
De kosten van het facturatieproces zijn een groot mysterie….
3.
Rapportages zijn lastig te produceren….
4.
De overgang naar e-invoicing of SEPA lijkt complex en tijdverslindend….
5.
Klanten kunnen de afdeling debiteurenbeheer niet bereiken tijdens de lunch of op andere “ongelegen” momenten….
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6.
U zou de lay out van facturen graag aanpassen, maar….
7.
Als ik nu eens persoonsgericht kon adverteren op de factuur….
© Lindorff Group AB. All rights reserved.
Thank you! We zien u graag bij stand - nr. 7!
