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COMMERCIAL SUCCESS STORY
Seeking greater efficiencies and improved profitability, a large transportation company collaborated with OSI, which helped achieve its financial goals with a consultative, strategic approach.
Situation
In an industry-leading move, a major transportation company made a significant decision to embrace Business Process Outsourcing and outsource all functions outside of its core competencies. It was a paradigm shift they believed would result in greater functional efficiencies and ultimately improve profitability.
OSI, with more than 50 years of business-to-business receivables experience, was awarded the company’s first-party delinquency work. In the initial stages of the relationship, the client’s objective was primarily tactical and singular in focus – they wanted to reduce internal head count. They coupled this objective with instructions to OSI to follow dictated work standards – the client wanted OSI to handle the work exactly as their internal staff had handled it.
Solution
OSI knew they could improve performance metrics and more, if the client would allow them to do a deeper and broader assessment of the receivables function. The client agreed. OSI invested substantial resources of their own on a comprehensive diagnostic, and in the end recommended extensive changes to the work standards and other client processes.
In a collaborative and highly interesting move, the client agreed to OSI’s recommendations. A test ensued and the result was win/win for all. Not only did OSI meet the client’s metrics, they also improved their overall customer service levels.
This initial success laid the groundwork for a long-standing relationship that has evolved from tactical support into a strong, strategic partnership. Working closely with the client’s management, OSI has implemented across-the-board re-engineering of the transportation company’s receivables function.
Specific program improvements:
- Developing proprietary software
- Creating more efficient work flows
- Establishing more best-in-class processes
Since 1996, this highly successful relationship has continued to grow: today, OSI manages the company’s receivables across 90 percent of the Credit-to-Cash Cycle.
Results
OSI met the initial goal of significantly reducing headcount. But OSI did far more to positively impact the bottom line:
- Reduced days sales outstanding by 20 percent
- Reduced bad debt write-off
- Increased the company’s percent of accounts current
- Achieved financial goals with a consultative, strategic approach
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