Case Study

How Systems of Engagement for order to cash results in DSO improvement for a leading insurance provider

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Client:
Crawford & Company

Industry:
Insurance

Business need addressed:
Improve accounts receivable (AR), days sales outstanding (DSO), collections, reporting, and workflow

Genpact solution:
Deployed Genpact Systems of EngagementTM (SOE) for order to cash (O2C), AR management suite, that provides custom reporting capability, an integrated platform, and enhanced visibility into customer payment behavior for effective collections.

Business impact:

  • 14% decrease in DSO in test business division within six months
  • 10% overall reduction in DSO within one year across the U.S. operation
  • Significantly higher employee productivity
  • Greater job satisfaction among the AR/collections team members
  • Expanded reporting: Internal and client deliverables

Crawford & Company, a leading insurance services provider, needed to optimize manual and disparate AR and collections processes. Genpact Systems of EngagementTM for O2C, AR management suite needed a large-scale test. Crawford’s innovative approach – spearheaded by Bruce Rosenblum1 – began with collaboration on best practices, followed by an evaluation and test of Genpact’s AR management suite. In the first year of full utilization, the platform helped deliver more than 10% improvement in DSO, frictionless collections, and more engaged collection employees.

Business challenge

Crawford & Company is a global provider of claims management solutions, business process outsourcing, and consulting, with a 70-year history of leadership in its space. It leveraged disparate systems and processes and a legacy mainframe to conduct AR operations. With 50 collectors dispersed in multiple service center locations throughout the U.S., Crawford required a solution that could help them “touch” more invoices and accounts more often, and that focused specifically on AR and collections to improve productivity, reporting, cash flow, and DSO results.

Genpact solution

Genpact’s AR management suite is a cloud-based Software as a Service (SaaS) solution suite of financial and accounting applications that enable management of the full O2C cycle. Hosted on salesforce.com, which serves more than 1.5 million users per day, AR management suite automates data gathering and reporting and provides enhanced workflow through a single, user-configurable interface. Its dashboards gave Crawford visibility into end-to-end AR and collection productivity throughout the company’s U.S. operations.

Genpact approach

Crawford was initially cautious about embracing a new solution to improve AR, collections, and employee results. After comparing several software solutions, the company chose to partner with Genpact because of their innovative approach to delivering an end-to-end O2C platform. A demonstration of Genpact’s AR management suite revealed an intuitive interface that provided transparency into disputes, transactions, and collection activities.

Crawford took a two-phase approach to deployment:

  • Test phase
    The company collaborated with Genpact to leverage Crawford’s institutional knowledge of AR through a “champion” they had hired specifically to move the AR operation forward. Genpact’s AR management suite was initially deployed in a single business unit, which was self-contained enough in its operations for an easily controlled test. Within seven months, the system produced such a significant AR and DSO improvement that the company decided to move up the scheduled rollout of AR management suite to the rest of the U.S. operations by six months.

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  • U.S. deployment
    AR management suite was then implemented across all U.S. service centers, providing a standardized workflow and single-source data to the entire AR team. Within four months, it was fully deployed, initiating further DSO reduction across U.S. operations.

    AR management suite’s reporting capabilities, which provide user-configurable reports that can be easily customized to accommodate their own clients’ formatting and information requirements, are especially useful. Crawford can now track the status of all AR activities and user efforts, view unbilled AR, and resolve disputes much faster. The daily task list helps to focus collection efforts. Managers can see exactly what each team member is doing and which accounts need attention. Using Genpact’s AR management suite, Crawford shifted from a strategy of collections measured by the past-due dollar amount to measuring by DSO and determining root causes for payment delays.

    AR management suite’s ability to seamlessly integrate with Crawford’s legacy systems and automatically pull data into a single, global information source accelerated reporting to the point that the credit and collections department is now a “go to” source of fast information for other business divisions. The best practices developed by users of AR Management Suite for AR and collections in the U.S. are now being shared across the global enterprise.

    This collaborative project allowed Genpact to “realworld” test its software, which passed with flying colors. After successfully implementing the Genpact’s SOE solution at Crawford in 2010, Genpact has helped scores of businesses across the globe and in many diverse industries achieve similar success in their F&A operations.

"Before, my collectors felt like they were working on separate islands,” says Rosenblum. “Now they feel like they’re part of a village. We are very pleased with how Genpact’s AR management suite has driven both productivity and revenue while giving our people a tool they really like to use."

Business impact

The engagement met the goals of two forward-looking enterprises. Crawford recognized its AR deficiencies and was willing to take a chance in order to retain competitive advantage. Genpact had a viable product that needed a large-scale test. By partnering to test the system’s abilities in a high-volume business line, Genpact proved that its solution can drive better cycle times and cash flow. In return, AR management suite’s automated workflow, tighter controls, and analytic capabilities delivered significant business impact to Crawford such as:

  • 14% reduction in DSO in the test business division within six months
  • 10% overall reduction in DSO within one year across the U.S. operations
  • Significantly higher employee productivity
  • Greater job satisfaction among the AR/collections team members
  • Expanded reporting for both internal and client deliverables

An intelligent enterprise actively seeks innovative ways to get ahead—and stay ahead—of the competition. Crawford took a bold step in pursuit of greater AR effectiveness that is paying dividends across the entire U.S. enterprise.

For more information, contact, technology@genpact.com and visit, genpact.com/what-we-do/capabilities/digital/systems-of-engagement

  1. U.S. Credit and Collection Manager
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