Case Study

How a manufacturing company increased collections productivity by 147% through a SaaS solution with no additional staff

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Client: Oldcastle Precast, a leading manufacturer of precast concrete in US

Industry: Manufacturing and construction

Business need addressed: Attained greater operational effectiveness and clearer enterprise-wide insight into credit and collections operations

Genpact solution: Implemented the Genpact Systems of EngagementTM for order to cash (O2C), accounts receivables (AR) management suite, for collection, credit, and dispute management

Business impact:

  • Increased cash flow and liquidity
  • Higher customer satisfaction
  • Greater access to technology
  • Standardization and simplification
  • Lower risk and tighter compliance

Decentralized AR operations and the localized credit and collections procedures used by Oldcastle Precast, the leading manufacturer of precast concrete in US, lengthened cycle times, increased AR dilution risk, and provided little visibility into overall AR effectiveness. Wanting to improve efficiency and ensure the best possible customer service, the firm deployed Genpact's System of EngagementTM for O2C, AR management suite, a Software as a Service (SaaS) suite for credit and collections. The technology leveraged enterprise resource planning (ERP) investments already in place, created a virtual shared services operation, automated processes, and provided portfolio analytics that increased collections productivity by 147% without adding additional staff.

“The Genpact AR management suite for collections has allowed us to recognize 147% growth in collection productivity without adding headcount."   - Josh Nolan, Director, Credit Shared Services

Business challenge

Oldcastle Precast's ERP and distributed operating centers were unable to provide consistent insights or create actionable intelligence to improve AR performance. Each center had its own methodology for managing credit and collections. In addition, AR effectiveness suffered from:

  • No prioritized portfolio coverage
  • Non-standard strategies for collections
  • Dispute resolution cycles times longer than 60 days
  • Incomplete coverage: Less than 50% of the customer portfolio was “touched" every 30- day cycle
  • High transaction volumes and velocity (more than one million invoices annually)
  • IT system was not designed for prioritizing or automating credit and collections tasking
  • Needed non-linear scaling of FTEs to business growth

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Genpact solution

Legacy systems and complex processes are often the biggest hurdles in the adoption of advanced digital technologies for large enterprises. A Lean DigitalSM approach combines digital technologies, human centered design thinking, and Lean principles, underpinned by domain expertise to provide practical and more effective solutions. It enables organizations to reimagine underlying processes and leverage digital technologies, such as Genpact's AR management suite, which complement rather than replace existing IT systems.

Oldcastle Precast implemented the AR management suite for collection, credit, and dispute management to satisfy two critical goals:

1. Standardization and simplification
With a focus on collection prioritization, dispute resolution, reporting, and making it easier for the customer to do business with Oldcastle, the solution:

  • Provided a standard platform for collections operations across all regions
  • Integrated data from disparate legacy systems into single-source access through AR management suite
  • Integrated credit bureau data with AR management suite's credit information for better risk assessment
  • Automated workflows and dispute escalation
  • Generated rule-based daily task lists for more focused agent effort and faster collections
  • Enabled customized reporting without IT intervention
  • Ensured real-time transaction tracking and performance monitoring
  • Automated customer notifications, decreasing disputes and shortening cycle times
  • Enabled customer payments by ACH or credit card, accelerating cash collection and decreasing days sales outstanding (DSO)

2. Portfolio segmentation and strategy
Integrating Oldcastle Precast's dispersed historical data into the AR management suite provided a clear view into customers' behavior and their interactions with the company. This enabled:

  • Analytics for examining the customer portfolio and segmenting it by value, risk, and trends
  • Automated risk-based collections strategies and solutions
  • Standardized strategies across regions for more effective collections
  • Analytics-based performance and customer service reviews

Business impact

  • Reduced DSO by 8%
  • Shortened dispute resolution cycle time by 90%
  • Enabled 100% account coverage (“touches"), increasing capacity without adding staff
  • Streamlined business credit and collections operations across all regions
  • Reduced credit and AR dilution risk
  • Provided “on-demand" and actionable management reporting and dashboards Genpact's AR management suite provided Oldcastle Precast with rapid and solid ROI within a year of deployment, and removed the uncertainty within their O2C processes.