MAXIMUM USE OF CREDIT-INSURANCE POLICIES
Groupe Leader is the 9th largest recruitment firm in France, the 3rd largest independent player and the largest unlisted group. Built around its flagship brand Intérim, the company operates some 100 recruitment agencies.
In 2014, Groupe Leader management was looking to review its accounts receivable management and incorporate risk assessment. With 6,500 clients, two thirds of which are SMEs and micro-businesses, the company is faced with 60% turnover in its customer base. For Groupe Leader, such customers represent a greater risk of late and non-payment, thereby dragging down its revenues.
We found out a customer was high-risk when it didn’t pay. We had neither the time nor the resources to really get to know all these new customers and measure their financial strength. We thus needed to reorganise our accounts receivable management process in order to incorporate both risk and collection,
explains Jérôme Heraud, Groupe Leader Credit Manager.
The Finance Department started looking for a dedicated financial CRM solution in order to optimise cash by speeding up the collection process. Groupe Leader has had credit insurance with Euler Hermes for over 20 years, and was won over by the unique solution developed by Sidetrade and the global leader in credit insurance. By incorporating credit insurance contractual terms and conditions into accounts receivable management, EH Intelligence by Sidetrade provides Groupe Leader with a real-time overview of its risk exposure.
ANTICIPATING RISK AND CHANGING BEHAVIOUR
Groupe Leader chose Sidetrade Network to replace its previous accounts receivable management software. On top of the fact that it didn’t offer any visibility regarding customer solvency, the software was not very configurable, resulting in lost time for collection officers.
Sidetrade is more intuitive, smoother, simpler. Each person’s workload is automatically defined based on dunning scenarios. It is a guiding force that has been well accepted, primarily because it is much more powerful than the previous software,
stresses Jérôme Heraud.
The support provided by the teams to reengineering workflows is another source of satisfaction for the Finance Department, which wanted to involve everyone in the change process. The initial goal was to gain 8 days of cash and target zero non-payments. But Groupe Leader management was also hoping for a change in behaviour regarding customer risk. With EH Intelligence by Sidetrade, the company saw its DSO consolidate within a few months, despite a challenging economic climate, as well as improved relationship between the financial and sales teams. This was the result of the successful acceptance of the new tools made available to Groupe Leader front-line employees.
Sidetrade is a real partner. We receive a level of support we haven’t seen anywhere else and were assisted throughout the roll-out. Our employees rediscovered the importance of collection,
notes Jérôme Heraud.