We provided our client with the project management and facilitation skills necessary to ensure the smooth transition of processes and activities from an outsourcing partner, leading to higher levels of customer satisfaction and better working capital management.
The Situation
Our client, a major business intelligence service provider, had outsourced its entire collections and cash application functions to an offshore partner. The outsourcing relationship was marked with friction from the beginning, but when cash flow and customer service began to be negatively affected, our client decided to handle collections and cash application in-house. This involved hiring the right people, developing best practice processes, and adopting right tools to return performance to pre-transition levels.
The Satori Solution
To stabilize the collections and cash application functions until the transfer of ownership back to our client, we monitored the day-to-day performance of the offshore team. Next, we worked with in-house managers to establish system training programs and schedules for the newly-established US team. After supporting the actual system transition, we facilitated the design of new reports that helped our client monitor and manage progress of the new internal functions.
The Results
Our client continued to meet its annual cash goals during the transition of activities. Two months after the conclusion of the project, Days Sales Outstanding (DSO) levels had actually been reduced from pre-transition levels by an average of three days. The new US-based team was further able to reduce dispute value by 25% and dispute volume by 5%.