‘Credit Management Roadmap to Improvement…’ The

Transcript:‘Credit Management Roadmap to Improvement…’ The:
‘Credit Management Roadmap to Improvement…’ The Credit Management Journey ‘Building Credit Together’ One Team One Goal European Conference Amsterdam 14th – 16th April 2013 Nick King, MICM Group Credit Director 1 HEADS or TAILS HEADS or TAILS 2 Setting the Scene 3 Strong group brands 4 Business Overview – 4 Divisions with shared support General Merchants Specialist Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial / National Sales Marketing Plumbing & Heating 5 5 Renewable Energy SOLFEX Acquired by TP Group in Jan 2013 SOLFEX energy systems is one of the UKs first and leading innovators and suppliers of solar energy systems. Allow TP to offer our customers an integrated approach to energy efficient building 6 Key Figures £5 billion t/o – 2012 Excluding retail = £3.6 Billion Total Staff = 25,000 Total Branches – 2,000+ (over 19 brands) 137,000 to 140,000 credit account Customers Receivables Ledger of £ £300,500,000 DSO y/e 2012 = 56.45 Bad debt Provision - £5 million 37,000 cheques per month total value of £85 million 50,000 bacs payment per month value of £154 million 7 Organisation Total Credit Services Staff = 253 Bus Unit Managers 8 From the Beginning Started in October 2011 Follow in the Steps of Predecessor Integration of New Business Difficult Market Conditions Insurance Renewal (BSS Group) Change of Mind set Art of Delegation 9 Integration of BSS Group General Merchants Specialist Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial / National Sales Marketing Plumbing & Heating 10 BSS Integration Staff structure Insurance Credit Limits System and Process “Them & US” Mentality 11 Perception 12 TP Group 13 Perception Complacent Lack of Investment Low Engagement Low to Medium Skill set Not engaged with peers “credit industry” Loyal Knowledgeable about Industry Low to medium attrition Willingness to do well Made best of a bad job 14 Perception Stale/ Fragmented Minimum control/review “Make do” Worked Understood and Accepted (with region) Integrated into system Does the job 15 Perception Outdated Complicated Manual Not understood/communicated Not flexible Reward not seen as beneficial Accepted Delivered the results 16 Perception Lack control Old technology Fragmented Poor reporting capability Lack of investment Does the job Integrated into business Has good collection capability Opportunity to invest 17 Mountain to Climb 18 Then you will ALWAYS get what you always got IF YOU ALWAYS DO WHAT YOU ALWAYS DID Reality Check