OnGuard

Konica Minolta chooses OnGuard New Zealand

Mon, 12 Jul 2010 00:00:00 GMT

They have chosen OnGuard because it covers all facets of credit management: workflow, reporting , dispute management and internal and external communication. This in combination with the renowned OnGuard flexibly, user friendliness and last but not least because of our long term strategy in Australasia. OnGuard New Zealand is proud to have Konica Minolta as a new customer and is looking forward to a long-term and very successful relationship from which both will benefit.

About Konica Minolta
Konica Minolta Business Solutions is a global leader in advanced imaging and networking technologies from the desktop to the print shop. Unparalleled advances in security, print quality and network integration are brought together through their printing systems. Konica Minolta Business Solutions New Zealand Limited is an independent, Australasian-owned and operated business. Their clients benefit from local management presence and Australasian ownership. They have been working with New Zealand businesses for nearly 40 years, helping to efficiently manage information flow and harness new document technology.

Payment behaviour is no longer worsening

Wed, 30 Jun 2010 00:00:00 GMT

But the fact that 70% of customers now pay within the stipulated period appears more positive than it is. This is shown by the ninth Credit Management Trendmeter from OnGuard, an independent periodic survey amongst a representative group of credit managers in the Netherlands.

Reversal in deterioration

A year ago 53% of the credit managers noted an increase in the DSO^1. This has now more than halved (24%). At the moment seven out of ten customers pay their invoices within the stipulated period. However, this may be due to the more flexible payment terms offered by the credit managers themselves.

Payment behaviour

Credit managers view the prospects for payment behaviour more positively. Last year nearly three-quarters expected payment behaviour to deteriorate; now that figure is down to 37%.

The credit crisis is no longer a popular excuse: the most commonly cited reason (61%) for late payment is the decision ‘simply’ to adopt a different payment period. Nearly seven out of 10 credit managers feel that SMEs are too restrained in chasing late payments. 84% would like to see legislation in the Netherlands which penalties excessive payment periods.

A selection of the other findings from the survey amongst credit managers:

- 40% cite the construction sector as the worst payers

- nearly 50% feel that they should take more risks

- 30% reject customers for whom no credit limit has been given

- 74% feel that information from external sources is not up to date

- 85% have contact with all the departments within the organisation

- 54% more often play an advisory role rather than a decision-making role

- 34% decide on customer acceptance and 30% decide on terminating a customer

- 70% are seeing an increase in their workload

- 73% agree that the credit crisis has made their work more interesting

- Credit management at international companies appears to be in the lead

A summary of the survey report (in Dutch only) can be requested from info@onguard.com.

If you would like to take part in the next Credit Management Trendmeter, you can register as a panel member at www.onguard.com/trendmeter or via info@onguard.com. As a panel member you will receive the full survey report. Please note that the survey is in Dutch only.

About the OnGuard Credit Management Trendmeter
The Credit Management Trendmeter is a survey which is carried out twice a year to identify the trends and developments in the field of credit management. The Credit Management Trendmeter is carried out amongst a representative group of credit managers in the Netherlands by the independent research agency Blauw Research on behalf of OnGuard.

¹DSO = the average number of days that an account is outstanding after the due date

Inspiring book 'A Future for Credit Management'

Wed, 30 Jun 2010 00:00:00 GMT

"A Future for Credit Management" a title with or without a question mark? Is this a statement or a question? Is there a future for credit management? Will the continued introduction of digital communication make this age old discipline redundant? Will the increasing speed of the economy, the speed at which deals are identified, consummated and products or services supplied, force us to re-think the way in which we supply on credit? Will the easy at which we can Google the world to identify an alternative supplier break the bonds of the traditional customer-supplier relationship? Will the current lack of credit, a fact of business life that, the experts tell us, will not ease the in the foreseeable future, force us all to evaluate the very principles of supplying our customers?

"A Future for Credit Management" explores the role of credit management in a rapidly changing business landscape in which digital communication and the ever increasing dependence on ICT are facts of business life. Globalization, which brings wit hit both opportunities and threats, and the breakdown of the traditional supplier-customer relationship cannot be ignored by even the smallest player. Global players are becoming increasingly dominant but being part of a supply chain, at whatever stage in whichever role, brings with it responsibilities and commitments. The basic objectives of credit management- creating a smooth flow of cash along the supply chain and maintaining and increasing customer satisfaction- are the true reflection of these responsibilities and commitments.

Read more?
You can request a (free) copy of the inspiring 'A Future for Credit Management' by David W. Taylor. Please send an e-mail to info@onguard.com.

Grontmij: 'It’s all about insight'

Wed, 30 Jun 2010 00:00:00 GMT

Grontmij consulting engineers has a worldwide network in the growth markets of water, energy, infrastructure and sustainable planning and design and creates value for its clients and shareholders by designing and creating a sustainable living and working environment. OnGuard fits perfectly within the reorganisation to centralise all processes. It’s all about insight.

“The focus is now very clearly on efficiency.” Financial Director Oscar Visser explains about the major restructuring within Grontmij, whereby geographical regions are being reduced to three business lines: Planning & Design, Infrastructure & Mobility and Water & Energy. By concentrating on core competencies Grontmij will be in a good starting position when striving for organic growth in the most profitable and fastest growing markets. This growth phase also involves investment in credit management. It is now a ‘dedicated’ part of a shared service centre with its own management team. OnGuard is the first process that will be running centrally. As well as systems and policy, employees’ profiles are also being analysed and raised to the required level where necessary in order to achieve optimum results.

A mere two years ago the approach to credit management was still very much ad hoc: fortnightly Excel summaries, no workflow, fragmented recording, every office working in its own way. There were too many options, which resulted in unnecessary time-wasting. “The professionalisation of credit management with OnGuard is safeguarding knowledge,” says Visser. “A history is being built up, and thus insight into payment behaviour. Monthly reports can therefore also be used pro-actively. There is now insight at both overall and client level.”

More than the target achieved within a year

Once Grontmij started using OnGuard in 2008, spectacular results were achieved within a year. The total Overdue balance has fallen from 50% to 30%. According to Visser: “That represents 10 to 20 million euro. The target of 38% was adjusted halfway through to 30% and was then also achieved. I expect to reduce it even further.”

Results: a summary

Simple and flexible to use
Insight and overview
Overdue balance from 50% to 30% (<1 year)
Building up history
Link between complaint management and quality control
Professionalism with respect to the client

OnGuard Ervarium rolled out red carpet

Wed, 30 Jun 2010 00:00:00 GMT

Kasteel Havixhorst in Meppel, Kasteel van Rhoon in Rhoon and, finally, our very own Nederhorst Castle in Nederhorst den Berg rolled out the red carpet for about 200 guests. Thanks to the warm weather, visitors were able to combine informative workshops with a drink in the beautiful and sunny castle gardens.

Customer satisfaction as the defining factor for success
The aim of the OnGuard Ervarium is to inform our clients, prospects and partners about our vision and developments. Further, we think it is important for fellow professionals to meet one another and share experiences about credit management and OnGuard software. Thus the round-table discussions were a huge success. Credit management professionals with different backgrounds sat around a table to discuss developments in credit management. The Credit Management Trend-meter was the key theme. The presentations by OnGuard-users Iwan Breton (Hypocasso), Rob Salden (TNO) en Frank Heijke (KPMG) about ‘Customer satisfaction as the defining factor for success’ were also very well received. The session ‘I love customers’ offered an original view on the optimum client relationship. The presentation by CEO Dave Taylor ‘The future of Credit Management’ was inspiring as ever.

In short, the seventh OnGuard Ervarium was once again a very successful event. A photo report of the days can be found at www.onguardervarium.nl.

NZCFI Credit Professional of the Year award winners announced

Wed, 28 Apr 2010 00:00:00 GMT

Bonita Morony from St John was named the 2009 Credit Professional of the Year and Elke de Jong from PSP Ltd was named the 2009 Young Credit Professional of the Year. OnGuard congratulates both professionals with their impressive achievement.

We can look back at a very successful event. OnGuard was proud to be the major sponsor of the NZFCI Credit Professionals of the Year event which provided a great opportunity to acknowledge the achievements of credit professionals and in turn, to enhance the profile of the credit and finance industry as a whole.”

For more information, please contact our New Zealand office on info.nz@onguard.com .

OnGuard stranded because of ash cloud

Thu, 22 Apr 2010 00:00:00 GMT

People could not reach home or business destinations because of the air trafic chaos caused by the volcanic ash cloud.

Worldwide focus of OnGuard results in frequent travel. A combination of patience and creativity solved most travel challenges. We hope air trafic will be resumed soon as the volcanic eruption is cousing more and more economic damage to companies each day.

OnGuard is rolling out the red carpet for you

Mon, 29 Mar 2010 00:00:00 GMT

That is why we would like to thank our customers, as well as our partners, for their cooperation and dedication to OnGuard. We will be doing this by rolling out the red carpet for them – literally and metaphorically.

OnGuard will be rolling out the red carpet for you:

During our OnGuard events, where you will receive an insight into new OnGuard products and where you, together with fellow professionals, can discuss developments in credit management.
Via our product development – This year OnGuard will launch various new products on the market, which will offer extra benefits to our customers.
Via our service desk, where you can profit from proactive service and extra availability via our customer portal, via the telephone number +31 (0)88 256 66 66 and via the global service network.
Via extra credit management advice to improve your experience of OnGuard products. This will be done using an investigation, where we evaluate your current processes and your use of OnGuard, or by training your team in credit management or the use of OnGuard.

OnGuard holds customer satisfaction in high regard. The schedule for 2010 contains various activities that may be of interest to you, including a new set of round-table sessions. In addition, there will also be a number of other interesting activities which we will further explain later in the year.
So keep an eye on your mail-box in the coming months because we are rolling out the red carpet for you.

Carlson Wagonlit Travel: Credit Management doing better than ever

Mon, 29 Mar 2010 00:00:00 GMT

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.”

Linda Jones Credit Professional of the Year

Mon, 29 Mar 2010 00:00:00 GMT

The ICM10 dinner took place on Tuesday 16 March at the stunning Royal Courts of Justice in London. The presentation of ten different Credit Management Awards, comedy, live music and many interesting people provided the formula for a very successful evening.

Credit Professional of the Year, the ultimate accolade for exceptional performance and achievement, was awarded to Linda Jones of Hewden Stuart for the significant improvements made throughout her team. The Credit Team at Hewden Stuart made it a night of double celebration, receiving the Performance Improvement Award for its emphasis of having a Credit Manager at the heart of its business delivering real value.

Hylke van der Velde, Account manager at OnGuard, had been selected to present this Performance Improvement Award to the Credit Team at Hewden Stuart.

OnGuard clients were also well represented at the ICM Awards dinner. Shared enthusiasm for OnGuard credit management software, and the drive to professionalise credit management, resulted in the intention to set up a UK OnGuard User Group – further information will be available very soon!

CEO David Taylor about international expansion

Mon, 15 Mar 2010 00:00:00 GMT

The final customs formalities have been dealt with, Samuel Eisenmann is about to depart for New York when we have the opportunity to speak with him. As the vice president of OnGuard USA Inc., he is to continue the expansion of this software company from downtown Manhattan. “There was only one answer to such an incredible challenge, and that would be ‘yes’”, says Eisenmann, who was employed at the head office in Nederhorst den Berg until recently, concerning the request to set up a branch in the USA. “I can’t wait.”

Why is OnGuard opening an office in New York now?
Taylor: “The new branch perfectly suits our plans for expanding on an international level. Our goal is to become a global organization. We made our move to the United Kingdom in 2008 and we opened an office in New-Zealand last year. The USA is the next phase. We are already the market leader in Europe. New York is a logical choice. We are strong in the services industry, such as accounting firms and law firms. They are primarily established on the East Coast, in New York. It is the place to be, the market potential is huge. What’s more, the time difference with Europe is smaller compared to other parts of the USA.”

Why have you opted to send staff of your own abroad to set up branches in the USA?
Taylor: “They are very familiar with OnGuard, our culture and they have the necessary expertise. And so a new branch can be established much more quickly.” Eisenmann: “In time, I plan to create a team in New York that is made up of locals. We chose the accommodations with that future expansion in mind.”

Which clients do you hope to be of service to from the office in New York?
Taylor: “We plan to seek out larger companies. Which is the group that we also supply in Europe. We will start off with the clients that we already have in the USA. In addition, we intend to focus on our current client portfolio: the American daughter- and parent companies of our European clients.” Eisenmann: “We recently conducted a survey among our existing clients in the USA. They prove to be very satisfied with the OnGuard software, particularly in terms of its flexibility, among other things. What’s more, our solutions link up well with the strict compliance-regulations in the USA and there is a huge need at American companies to automate the management of the receivables.

Then you must have high expectations regarding the new office.
Taylor: “I anticipate a very successful future for OnGuard in the USA. Our software is very suitable for organizations in large areas, like the USA. Handling complaints is an important aspect of credit management, among other aspects. Finding solutions for complaints involves people, in which close contact with the client is crucial. It is a decentralized process. The larger the area, the more outlets and branches a company has. Using the DCMS-software by OnGuard, which makes use of Internet, credit managers can ensure that complaints regarding a service or product land on the right desk.” Eisenmann: “A complaint is an opportunity to show a client just how much service you can offer. Credit management not only takes less time with OnGuard, but the services also improve and become more professional too.”

Many software companies are having a very rough time, while OnGuard is expanding. How do you explain that?
Taylor: “Companies now place credit management and the importance of working capital high on the agenda. Companies must manage to remain liquid during this crisis. Banks are now less inclined to provide loans and therefore request more background information, such as payment risks and cash flow. OnGuard provides insight into this information. On the other hand, companies are nowadays forced, more than before, to timely collect amounts owed by the client. Companies often have to wait for quite some time before the realized returns are actually deposited into the bank. This is money that you, as an organization, are entitled to and that you can then use to make investments. There is much money to be earned by simply reducing the DSO (Days of Sales Outstanding) by a mere two or three days. That is the smallest amount of DSO-time that can be deducted with OnGuard. Companies now pay much more attention to credit management due to the economic crisis. That is a huge opportunity for OnGuard.”

How does that translate into results?
Taylor: “Last year was a very good year for us, with a substantial profit and a growth that we feel is satisfactory. Our goal is to increase our sales each year by 25 to 30 percent. Investments by Dutch small and medium-sized companies in particular have stagnated, but large, international companies still invest. I expect us to be just as successful in the USA as we are in the United Kingdom, where we experienced an exceptionally good year. That too is a large country that will find our software to be very suitable. The United Kingdom meanwhile accounts for a considerable part of our sales.”

Once the crisis is over, will the increased attention for credit management then slacken as well?
Taylor: “I am sure it will, but large companies will have then acquired a taste for adequately managing receivables. Smaller companies will follow. I expect credit management software to become widely accepted with time. If your credit management is in order, you no longer need go to the bank. Risk management is an important aspect of credit management. It is about adequately and timely assessing any changes in the pay behavior of clients. You know that something is wrong when a faithful client suddenly starts to pay his bills later and later. You can then accurately respond to this situation. The greatest risks in terms of pay behavior are not new clients, with whom you can be stern, or key accounts, with whom you have developed a personal relationship. No, the greatest risk lies with clients who make purchases every once in a while. The amounts can increase enormously before you know it.”

What else can we expect in the field of credit management software?
Taylor: “The software has become increasingly sophisticated during the past years, with more methods of analysis and risk models, for example. Consider, for example, the further development of the customer scoring functionality, which enables companies to evaluate the risks relating to the pay behavior of their clients more adequately, using up-to-date information from internal and external sources. These risk functionalities will be further developed in the years to come. The information will also be better tailored to the individual user, with handy tools and desktop gadgets. After all, different positions require different information on screen; a cash flow overview for the CFO, for example, a list of complaints for the account manager and an overview of outstanding entries for the manager receivables.”

What are the plans with OnGuard?
Taylor: “This year we plan to launch a series of innovating Internet products. Our strategy is furthermore to open a new branch abroad each year.” Eisenmann: “When I started working at OnGuard in June 2007, 40 people worked here. That number is now 75 and we intend to take on an additional 20 employees before the end of the year. Credit management is a high priority in times of crisis. OnGuard rises to the occasion.”

Succesful OnGuard User Group meeting

Mon, 15 Mar 2010 00:00:00 GMT

Under the theme ‘The OnGuard User Group overcomes the crisis’, the OnGuard User Group presented its ideas and activities for the coming year to OnGuard users. Wim Doorn kicked off the afternoon with a brief introduction and a presentation about credit management at a legal firm, namely CMS Derks Star Busmann.

Marc van Zanten, lawyer and partner at CMS Derks Star Busmann, and (joint) trustee for DSB Beheer B.V., continued the afternoon schedule with useful tips about how credit managers can extract positives from bankruptcies. Credit managers are able to take various measures before, during and after the bankruptcy in order to safeguard the collection of claims.

After a brief pause, Arendo Sturre, Team leader Credit Control at Ernst & Young and key member of the OnGuard User Group, highlighted some of the developments within the OnGuard User Group. Over the past year the OnGuard User Group has opted for another approach, whereby it operates as a support organ for OnGuard and product development. At the start of the year, it helped the key members to test release 5.13 (the winter release), with a few members following a pilot of the new OnGuard Interactive training. Jos Hermsen (Deli XL) and Carola van Doleweerd (Udenhout Groep) outlined their experiences.

To conclude, Eelco Krekelberg, product manager at OnGuard, presented the new functionalities of OnGuard Release 5.13, released in March 2010. Most of these functionalities have been put forward by the OnGuard User Group. This is because OnGuard has also assigned 120 hours of software development to its user group. The new functionalities will be further outlined in the upcoming OnGuard newsletter (The Credit Vision).

The afternoon was appropriately concluded with a cosy drink in the cafe of CMS Derks Star Busmann. This was an opportunity to meet other credit managers and share experiences about credit management and OnGuard software. Everyone made good use of this opportunity, so the afternoon can be seen as a resounding success.

If you have any questions about the OnGuard User Group, you can e-mail to the OnGuard User Group directly. You can also personally approach key members - personal contact details for each key member can be found on the key members page.

On behalf of the key members of the OnGuard User Group, we would like to thank all guests for attending the meeting.

OnGuard crosses (the oceans) to USA

Mon, 15 Mar 2010 00:00:00 GMT

The new office in New York is to start off with Dutch staff and is led by Samuel Eisenmann, who was part of the sales-team at the head office of OnGuard in Nederhorst den Berg until recently. As the Vice-President of OnGuard USA, he is to serve existing American clients and will bring in new clients as well. He will focus mainly on the larger companies in this respect, the same group of companies that OnGuard already supplies in Europe.

Global organization
“The new branch suits our plans for international expansion,” says David Taylor, CEO of OnGuard. “Our goal is to become a global organization. We made our move to the United Kingdom in 2008 and we opened an office in New-Zealand last year. The USA is the next phase. We are already the market leader in Europe; many of our competitors are from the United States. They compete with us at home and we now plan to compete with them on their turf.”

“New York is a logical choice”, says Eisenmann regarding the place of business. “We are strong in the services industry, such as accounting firms and law firms. They are primarily established on the East Coast, in New York. That is the place to be, the market potential is huge.”

Growth despite the recession
OnGuard expects to increase its work force by 25 percent this year. A striking growth if one considers the economic crisis, which has also struck the ICT-sector. “Companies now place credit management and the significance of working capital high on the list of priorities. Which is a huge opportunity for us,” Taylor explains. “Companies must manage to remain liquid for the duration of this crisis. Banks now request more background information prior to providing loans, such as payment risks and cash flow. OnGuard provides insight into this information.”

In addition, companies are nowadays forced, more than before, to timely collect the amounts owed by the client. There is much money to be earned by simply reducing the average Days of Sales Outstanding (DSO, the number of days that invoices are outstanding) by a few days. “This is soon the case with OnGuard,” says Taylor.

An intverview with Eisenmann and CEO David Taylor can be read on this website. A talk about the international expansion, having spunk in times of crisis, the developments in the field of credit management and other plans for the future.

Mixing business with pleasure in Kiwi Style

Mon, 01 Feb 2010 00:00:00 GMT

Unfortunately we had to cancel the sailing trip with one of the America Cup yachts due to bad weather. On 29 January we organized this trip again and we had perfect sailing weather, 26C and a present 15 knots wind.

Some had to work very hard as grinders but we had more then enough time to relax, enjoy the power of the boat and do some networking. In short the perfect way to start the long weekend.

Thank you all for coming and we all felt very sorry for the people who were stuck in traffic and for those who had to work hard at the office and couldn’t be missed.

Hope to see you all again at the next OnGuard Ervarium in December 2010 or at one of the round table meetings

Successful start for OnGuards 1st New Zealand client

Thu, 21 Jan 2010 00:00:00 GMT

Successful start for OnGuards 1^st New Zealand client

Baldwins Intellectual Property is live with OnGuard. The Credit Controllers are already enjoying the benefits of the OnGuard software. Installation, set up, training and going live was completed successfully within the planned two week period. Baldwins is now operating a state of the art credit management system that will streamline their credit management and increase their cash flow.

OnGuards first New Zealand client stated that they were impressed by the professional and smooth implementation of the software. The project was completed within the agreed time and everything was and still is running smoothly.

Baldwins is a leading patent attorney firm with an associated law firm (Baldwins Law Limited). Baldwins has offices in Auckland and Wellington and is servicing clients in New Zealand and throughout the world. Its mission is to help businesses achieve and maintain their commercial advantage in the marketplace by protecting, developing, commercialising and enforcing their intellectual property assets.

First Irish client for OnGuards business partner Sysco

Thu, 14 Jan 2010 00:00:00 GMT

Linden Foods required a system to help manage their credit management department more efficiently. They wanted to reduce the time spent prioritizing tasks and have a much higher level of automation in their credit management process. They were looking for a system to help their credit controllers to get more work done in the same amount of time. From the very start of the process Linden Foods was impressed with the functionality and ease of use of OnGuard, they were especially impressed by the user friendliness of the OnGuard interface. Another factor in Linden Foods choosing OnGuard was that they will remain in charge of the application management and can make changes themselves, which is very important to them.

The company which is part of the Linden Food Group currently services a wide range of retail multiplies, dedicated convenience food manufacturers, and the wider meat packing industry in UK and Europe.

Sysco Software Solutions is a strategic partner of OnGuard.

The Credit Vision December 2009

Wed, 23 Dec 2009 00:00:00 GMT

In the December edition of The Credit Vision you can read more about the following subjects:

Credit note from David W. Taylor, CEO OnGuard
Summertime by David Young, NZCFI
OnGuard Product News
Trend reversal in time taken to pay accounts
OnGuard Ervarium New Zealand 2009
OnGuard organises ...
How does AB Oost anticipate risks?
What are the Credit Management challenges at Deli XL?

Check our newsletter on The Credit Vision December 2009

How does AB Oost anticipate risks?

Fri, 18 Dec 2009 00:00:00 GMT

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

Trend reversal in time taken to pay accounts

Fri, 18 Dec 2009 00:00:00 GMT

2009 has been a challenging year. Organisations around the world have had to look critically at their cashflow. As the year comes to an end, the first signs of recovery are slowly coming into view. The downward spiral of worsening payment behaviour is stabilising, according to the eighth Credit Management Trendmeter from OnGuard. This is a sounding that gives additional grounds for optimism for 2010.

Although payment behaviour is still classified as ‘moderate’ or ‘poor’ by nearly one third (33%) of the credit managers interviewed, there is no further worsening with respect to previous surveys. On the contrary, outstanding invoices are being left unpaid for slightly less time compared to six months ago. At that time, customers were paying after an average of 60 days; now the average is 58 days. The proportion of customers who pay within the stipulated payment period has also improved slightly (from 64% to 68%).

39% of respondents expect payment behaviour to remain unchanged over the coming year; one in ten (10%) even expects to see an improvement. In May of this year more than seven out of ten respondents (72%) thought that payment behaviour would worsen over the coming year. That percentage has now shrunk considerably to 47%. The prospects have therefore become more positive. Yet we must all be wary of too much optimism. As soon as sales improve again, there is a greater risk of less attention being paid to payment behaviour. This whilst the costs incurred increase.

About the OnGuard Credit Management Trendmeter
The Credit Management Trendmeter is a survey which examines the trends and developments in the area of credit management twice a year. The Credit Management Trendmeter is carried out by independent research agency Blauw Research on behalf of OnGuard. 123 Dutch credit managers took part in this survey.

OnGuard Ervarium New Zealand 2009

Fri, 18 Dec 2009 00:00:00 GMT

A year has passed since OnGuard first set foot in New Zealand. To celebrate this milestone, OnGuard New Zealand organised its first OnGuard New Zealand Ervarium 2009 on 4 December.

In the Netherlands, OnGuard has been organising the OnGuard Ervarium since 2004, with the aim of allowing credit managers and fellow professionals to exchange knowledge and experiences. After six successful editions of the OnGuard Ervarium in the Netherlands, OnGuard decided to also continue this tradition in New Zealand. As a ‘cherry on the cake’, everyone was also invited for a business trip to a real America's Cup sailing match.

At a stunning location in the harbour of Auckland, a delegation of over thirty New Zealand credit managers and clients arrived in their sailing gear at around noon. It was stormy weather and it promised to be a very exiting sail. Marc Vergroesen, Country Manager of OnGuard New Zealand started the day with a presentation about the evolution of modern credit management. Marc adopted a humorous approach in explaining the history of Credit Management – from pre-history to the middle ages, to the credit management of today and the future. This was a particularly educational session, which highlighted the latest OnGuard product developments and a practical case study.

After a hearty lunch, everyone was itching to board the sailing yacht. However, the weather was so extreme that it was too dangerous to go to sea. Thus, in keeping with Kiwi tradition, the group decided to spend the rest of the afternoon in the local pub. It was a cosy and informative afternoon, which should definitely be repeated. And the boat trip? This will be done in January...