Project Management: PDCA Method (Iterative design and management method) / Control circle)

Business Case: Retail Inventories Industry - European Leader large company

BUSINESS CASES

7/15/20231 min read

KEY OBJECTIVES

There is no Collection Department, therefore the objective is the decreasing as much as possible of the outstanding amount before the end of the project

MISSION

Full-time consultant within the customer office during 4 months

  • Creating and implementing a strategy to improve the collection of outstanding credit

  • Monitoring accounts to identify overdue payments.

  • Finding and contacting debtors to arrange debt payoffs. Keeping accurate records and reporting on collection activity.

  • Mediating the financing plan between the customer and CEO, CFO and/or Sales.

APPROACHES & KEY COMPETENCIES

  • Transversal Management

  • PDCA Methodology

  • Excel / Appetite for management tools

  • Strong skills of negotiating

ONBOARDING

Embedded

  • Global Sales Teams

  • Supply chain Teams

  • & Management Control teams

ACTION TAKEN

Step 1 : Organisational mapping

  • Optimizing the Dashboard for an optimal following-up of the outstanding balance under the PDCA method (Plan / Do / Check / Act)

Step 2 : Set-up of instances

  • Defining the instances per typology (Every week, 4 weeks meeting)

  • Leading advisory committees with internal Directors to take the best decision on the overdue

Step 3 : Open actions

  • Negotiating disputed invoices with major corporations, such as Walmart, Carrefour & Alexander McQueen

  • Chasing the actors to solve all open points until they get closed

Step 4 : Outstanding balance Follow-up

  • Successfully collecting outstanding balances and obtaining promises of payments and settlements

Step 5 : Change Management

  • Communication during all project phasis (Key Achievements, Next steps & Results)

  • Embedded all the different teams to achieve this project and meet the target

POTENTIAL RISKS

  • No decrease of the outstanding amount

  • Write-off significant outstanding amount and impact the P&L

SOLUTION TOOL

  • Microsoft Navision

KEY PERFORMANCE MEASURES

  • Evaluated & improved KPI-based performances.

Track records:

► Significantly decreasing past-due invoices of 60 days or more and solving disputes with global sales teams

► Decreased account receivables by 46 % - Open balance

CUSTOMER BENEFICES

  • No internal FTE

  • High skills of a consultant to deal with customers

  • Punch action for the collection of unpaid old bills

  • Strong impact on the P&L