Industry CPG
Region North America and Europe
Solution End-to-end collections engine framework
Context
Traditionally, the invoice-to-cash collection process for companies has been reactive, and collection agents follow up with customers solely upon delayed payments or when disputes are raised. This approach often leads to inefficiencies and delays in cash inflow, impacting the company's financial health. However, the integration of smart predictive analytics and data-driven solutions can help transform this process. Shifting from reactive to proactive collection strategies optimizes resource allocation, enhances cash flow management, minimizes collection cycles, and improves overall financial performance.
Problem statement
The client was a leading CPG company whose Order-to-Cash (O2C) division wanted to improve its cash inflow by transforming the invoice-to-cash collections process. Their traditionally reactive approach was slow, manual, and expensive. They partnered with MathCo to instead develop an intelligent and proactive approach by implementing predictive analytics for the invoice-to-cash collection process to improve cash inflows, optimize collection resources, avoid late collections, and improve overall EBITDA.
Impact
- Optimized the use of collection resources
- Improved collection time by 1 week
- Avoided the risk of late payment of invoices averaging $5.2M per month