Case 1 - Order entry
Case 2 - Invoice Submission
Case 3 - Collection

The Issue

 

Large Oil & Gas Services company faces $90MM in aged AR over 90 days

Steps Taken

  • analysis done to determine most of the invoices rejected due to missing information at order entry stage

  • mapped out billing process at >60 facilities

  • found and resolved bottlenecks, duplicate steps and created escalation pathways for when 3rd party information was missing

  • tracking process created for billing admins to have visibility of invoices once they were rejected by the customers

Result

After implementation and several months of sustained effort AR was reduced to $20MM over 90 days with no further growth of overdue AR. Days to Invoice were reduced by 8 days resulting in Working Capital savings of $6MM annually

The Issue

Oil & Gas Services company has taken on a large EDI Billing department due to the differing systems of their customers

Steps Taken

  • a detailed analysis was conducted on what the best approach was to optimize the process and create efficiencies

  • after weighing alternative options, it was determined that the business is well suited for a B2B EDI system

  • co-managed the RFP with the IT Dept. and ensured that Operations needs in the field were being met as well as internal Finance requirements

  • evaluated proposals and made a recommendation based on which proposal met or exceeded the set baseline

Result

Implementation will allow for a redistribution and/or reduction of EDI department as a result of the automated process. Total saved approx $1.4MM: 1 day of Working capital, reduction of human entry error to zero and savings of 8 FTE's

The Issue

After an acquisition a US Waste Mgmt/Energy Services company has collection issues with the acquired customers and outstanding AR of $34MM

Steps Taken

  • organized customer master data to segregate files into those invoices that still required missing info, those that were rejected due to price/volume issues and those that needed to be resubmitted

  • led the organization of customer files including gathering of all potential backup from the field and sorting of invoices with backup to be presented to the customer

  • created a tracking sheet with assigned responsibility to the sales person in charge of each account. Specific direction provided to Sales on which invoices have full info and backup and those that had an assigned discount due to missing info

Result

In a period of 3 month the client was able to recover approx 88% or $30MM due to the targeted efforts

Case Studies

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