WIP – Work in Process
The management tool “work in progress” (WIP)) is an important auxiliary means for managing the collection processes and their control.
Focus matrix to manage debtor handling prioritization
A targeting matrix is a tool for implementing the “Pareto principle” – which states that treating 20% of the debtors will bring us 80% of the collection – a management tool that allows the credit risk and collection manager to determine the order of priorities in his work graphically.
Managing the “debt waterfall”
The administrative tool known as the “debt waterfall” provides the collection manager with an overall view of the integrity of the collection processes and their relative efficiency. The next principle expressed here is that the behaviour of the collection system should be consistent over time, and any change requires an explanation.
Additional control reports to manage collection operations.
We have compiled several control reports for the management of collection operations. We decided to concentrate the super indicators of the collection (profitability, cash flow, customer retention) in the further reporting system section, to provide an overall picture that will reflect the end-to-end credit management and collection.
Ageing reports
These reports describe the distribution of the debt status in the organization according to the age of the debt. Since the older the debt, the more difficult it is to collect it, this segmentation is of great importance.
Market surveys
The credit and collection risk manager cannot be satisfied with the data at his disposal. To increase efficiency and effectiveness, he must collect external data on projected products of the credit and collection systems in priority for the industry in which he operates.