If you haven’t heard the news yet, Michael Schillo, the Vice President of Finance at Sony Pictures Home Entertainment (SPHE), won the Accounts Receivable (AR) Innovation Award from The Institute of Financial Operations last month for the stunning results he achieved in Sony’s AR department after implementing DataServ’s quote to cash solution. DataServ helped Sony reduce its bad debt reserve by $25.5 million, from $26 million in 2006, the year Michael joined SPHE, to $500,000 in 2014. During that same time period, collections at SPHE went up $200 million, “paybacks” went up 350%, collection time decreased by 44%, and labor costs went down 45%.
Improving the financecollection process productivity is one of the key aspects of DataServ’s quote to cash solution that helped SPHE achieve these results. Collection efforts are often hampered by customers claiming:
They never received an invoice
They did not receive the goods
They want verification that the complete order was shipped
They returned a portion of the goods and therefore do not owe the entire amount due
The collection process is further hampered by collectors not having “on demand” access to the documents needed to address these client concerns. DataServ solved these problems by transforming paper documents into electronic ones and bringing them all together into an easy-to-use portal that includes: the proof of delivery (POD) from any carrier, a copy of the invoice, and the packing slip from the warehouse system. With this new capability, collectors are able to pull up electronic copies of all documents while they are on the phone with the customer, consolidate them into one PDF, and email them immediately. Having all of these documents instantly available for review with the customer resolves issues quickly and speeds payment. DataServ calls this capability “proactive POD.”
Prior to the implementation of proactive POD, SPHE required multiple calls and weeks to locate and send a POD copy to a customer, reconnect with them, and then try and arrange payment. Today, this process is accomplished in minutes!
For more information on DataServ’s quote to cash solution or how proactive POD can work for your organization, contact us at info@DataServ.com.