Carlson Wagonlit Travel: Credit Management doing better than ever

Ruud Strunk, Carlson Wagonlit Travel (CWT)

‘The payment schedule is still less than 30 days. And that is something we are proud of.'

Carlson Wagonlit Travel has a worldwide network of offices and the mission to provide its customers with excellent service at a competitive price. Global purchasing strength makes affordable rates possible. OnGuard provides structure to credit management and, as a result, helps monitor the wafer-thin profit margins.

The history of Carlson Wagonlit Travel (CWT) dates back to 1927, when the first office was opened on Dam square in Amsterdam. CWT has since grown to become one of the most important players in the Dutch market and a global market leader in business travel management.

Incoming and outgoing cash
With his 20 years of experience, Credit Manager Ruud Strunk knows every inch of CWT, and uses this valuable experience to successfully manage the Credit Management & Paying Office Department. Why has CWT chosen to combine the disciplines of Credit Management and a Paying Office? Strunk: “We need to ensure that our customers pay on time but, equally as important, we must also ensure that we pay our own suppliers on time. In other words, our high demands apply to both sides."

Integrated credit management
At a time when the travel industry is suffering badly from the economic downturn, the Credit Management Department is, surprisingly enough, doing better than ever. To what extent has Credit Management contributed to the positive results achieved by CWT in spite of economically challenging times?

Strunk: “To ensure optimal credit management, CWT uses a comprehensive palette of resources, ranging from credit acceptance and credit insurance to interest levies. During the 7 years we have been using OnGuard, this solution has grown along with the demands of our organisation. Keeping a close eye on all relevant aspects of credit management is ultimately the key to success. ”Many organisations are familiar with letters in which customers unilaterally change the payment period to 60 or even 90 days. Strunk: “This is not something we accept since it would make it impossible to sustain our profit margins. That is why our credit day score, the payment schedule for the customer, is still less than 30 days. And that is something we are proud of. Of course, it does take more effort to maintain this and we need to stay razor sharp. At a time when newspapers are filled daily with bankruptcy notices, I can proudly say that we have not experienced a single one in the past year.”