Aswin Vos, AB Oost
‘I want and must be able to anticipate risks’
AB Oost has been active as Coöperatieve Vereniging Agrarische Bedrijfsverzorging (a cooperative association) for over 45 years. 4,500 employees have been working for more than 5 million hours, which has resulted in a turnover of more than 130 million euros.
The payment ethics of our clients are good, but the terms of payment are sometimes long. Personal contact, knowledge and having a feeling for the company are very important in this branch. Our credit management therefore also focuses on this.
Professionalization
A broader “marketing” of the service by AB Oost requires professionalization, also of the accounts receivable management. Credit Manager Aswin Vos has been committed to an as efficient and effective accounts receivable management as possible since 2008. ‘The changed that we introduced, and which had the most important results, were going back to the basis of credit management and asking the organisation to be committed’.
Results
Vos: ‘I am proud of the results that we realised in eighteen months. The depreciations were too high. In the meantime they have been more than halved. The total outstanding balance has dropped by 30%. Apart from the DSO, I also use the weighted balance of the Average Collection period. This has dropped from 62 to 40 days and is still dropping. This is remarkable in this day and age! In its totality the balance of accounts receivable has decreased by 4 million euros in eighteen months, with a focus on credit management and an efficient application of OnGuard.
In brief:
- Reduction of the outstanding balance by 30%
- Average term of payment has dropped from 62 to 40 days
- Depreciations have dropped substantially
- Continuous ready knowledge at the department
- An overview and transparency for the regions.
- Specific information explained because of free fields
- Reports stimulate the team and management
