Case Study

Collections Optimization – WaterPump Manufacturers

Outstanding invoices worth ₹ 30 lakhs collected within 45 days of implementing new approach.

Challenge

A company trading in pumps was staring at a mountain of overdue invoices as customers weren’t paying on time. These issues with cash flow was restricting the company’s growth plans

Solution

  • Structure approach to collection of outstanding debt.
  • Dedicated resources appointed to handle collections.
  • Tracking mechanism implemented to measure collections on a daily basis. Invoice level payment tracking initiated.
  • Sales and Collections teams together made accountable for clearing outstanding invoices.
  • Customers categorized on basis of their payment history and customer category introduced as a checkpoint for all new orders.

Benefits

  • Outstanding invoices worth ₹ 30 lakhs collected within 45 days of implementing new approach.  
  • 40% of outstanding invoices collected within 60 days of implementation with collections worth ₹ 44 lakhs
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