Over the past two months, we listed the first six qualities and capabilities that describe the best first-party collections outsourcing providers. As a reminder, they were:
1. A/R specialists
2. Compatible with your corporate culture
3. Capable of meeting your requirements
4. Commit to best in class processes and systems
5. Customize their program to meet your requirements
6. Develop a program based on sound business rules
Below are the final three things the Right A/R Outsourcing provider should do as they manage your accounts:
7. Assign a dedicated team of representatives, thoroughly trained in recovery techniques, dispute resolution and customer service
The provider will then train these reps in your systems and continue to monitor their effort to ensure your expectations are being met. It’s the provider’s role to act as an extension of your company, and customer care should be a top priority.
8. Provide access to your account activity in real-time
The provider’s software system should allow their associates to track all activities and customer promises, which will assure consistent and timely follow-up. You should also have the ability to view real-time activity on each account and communicate directly with the associates. Ensure the provider you select offers a client portal.
9. Provide reporting that is transparent, meaningful, and insightful
As noted above, your entire portfolio should be accessible through a client portal that you can access for on-demand account information. Statistical reports should be available in the portal, and your outsourcing partner should provide you the ability to customize reports, as necessary, to coordinate with your internal metrics.
Benefits of Partnering With the Right Provider
To survive in today’s business climate, cost-effective, efficient receivable management is critical. Not only are resources tight and the competition fierce, the economy has added a new level of challenges. Now consider this: a $500 loss, at a 5% net profit rate, costs $10,000 in sales!
Outsourcing all or part of your accounts receivable management process to the right provider should help by:
- Improving your customer relationships while training them to pay within your terms;
- Giving you the ability to right-size staff, ensuring qualified coverage for special projects, vacations, seasonal business upswings, etc.; and
- Lowering your DSO, decreasing write-offs, increasing cash flow, and improving the overall health of your company.
Check out these other outsourcing articles for more information:
- Managing an Outsourcing Initiative-1
- Managing an Outsourcing Initiative-2
- Managing an Outsourcing Initiative-3
- Managing an Outsourcing Initiative-4
- Managing an Outsourcing Initiative-5
- Receivables Outsourcing
- Using Targeted Outsourcing to Increase Cash Flow
For more information about our commercial collection services, contact us at 844.937.3268 today!