Page 7 - NEXUM Information Pack

“Collecting debts across multiple jurisdictions requires knowledge and a careful assessment. NEXUM supports our team, proving an invaluable tool”
3. Reaction
The customer responds to your request for payment and disputes the invoice. There are a number of disputes relating to delivery, quantity and agreed price. To resolve the dispute you will need to liaise with a number of departments within your organisation, this whole process can be time consuming and entail the following actions:
Receive and read dispute from customer by post or email, as the reason for non payment.
Contact customer to discuss the dispute and negotiate payment of the undisputed items Record contact details in system
Create an internal email regarding the dispute to the sales person, delivery manager and customer service manager
Send a letter to the customer via email, post and fax detailing the nature of the dispute and how we will attempt to resolve it.
Diary an action to chase the salesperson & delivery manager in one week IF we have not received a response to the customer’s dispute.
Diary and action to contact the customer in one week to chase for payment on the basis that the dispute has been resolved.
Make a file note of all the actions today for future reference.
Total actions required by you at this stage = 12
Total time taken to action this one account at this stage = 40 minutes Total cost for the actions as above = £34
NEXUM benefit cost & time reduction of 85%
The action above entails much manual activity, NEXUM enables you to automate most of
the administration, leaving the ‘user’ to focus on the call/ discussion with the customer.
Total time taken to action this one account at this stage = 6 minutes, Total cost for the actions as above = £6
Conclusion, opportunity and the challenge
Accounts receivable is an admin intensive process, primarily due to the fact that you are dealing with active customers, often at phase of the ‘customer relationship’ seldom seen till now. The need for swift actions, timely responses and accurate storage and retrieval of information is critical. The chances are that your accounts receivables team have never been so busy, in addition if you business is experiencing a reduction in sales then the need to generate cash and reduce expenditure will be greater.
The opportunity is to optimise your existing cost base to be more effective. People represent the highest element to your cost base and each minute at work is an opportunity to be had. If your ‘people resource’ is incorrectly utilised then this re presents a waste of your investment in that overhead. Unnecessary administration represents an ineffective use of people resources, ad accounts receivables is an administrative intensive process a dilemma occurs. Part of the challenge relating to this process is the need for compliance to either existing procedures or legislation and future ones. For example a failure to properly deal with a customers dispute will detrimentally affect the outcome of a legal prosecution should the case progress to that stage.
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