BG Freight Line

The ambition of BG Freight Line was to optimise the collection process and to work in a more structured and proactive manner, with the aim of reducing the outstanding balance and the DSO. One of the requirements was that credit management had to be compatible with a couple of the company’s visions and objectives: “Customer oriented management and a structured professional image”. Martijn Ouwerling: “Since BG Freight Line started working with Visma | Onguard in 2004, the established targets have been comfortably realised. In my capacity as Finance Manager, I have primarily built up experience in the functional management of software and the supervision of credit controllers. Ever since we introduced Visma | Onguard, not a single reminder has been sent in paper format.” In addition, the number of employees in the Credit Control department fell quickly from 3 to 1 FTE after the implementation of Visma | Onguard.

BG Freight Line generally has 6000 to 6500 outstanding invoices from an average of 500 debtors. Margins are minimal, which is why there is intensive focus on cost management and cash flow. Our financial management pays specific attention to realising the best possible timing between outstanding and received payments. We use professional and structured credit management to keep the procedure up until payment of invoice as short as possible.

BG Freight Line generally serves two types of customers: Feeder customers with whom strict payment arrangements have been agreed, and Domestic customers for whom a wide range of payment arrangements have been established. Ouwerling: “We use circa 15 profiles to deal with different clients in an effective manner. The profiles make it possible to automatically address debtors in a structured and appropriate manner. Customers are familiar with the regularity of our reminders and we notice that this adds structure to the payments. Thanks to Visma | Onguard, corresponding in different languages and currencies does not demand extra time. The time we are able to save on a variety of fronts, provides ‘quality time’ that we can invest in (long-term) relationships with customers.”

Another factor that demonstrates the success of Visma | Onguard is that BG Freight Line has not sent a single reminder in paper format since Visma | Onguard was introduced. “Via meetings with the Onguard User Group I became aware that digital reminders are a long way from being standard practice everywhere else”, states Ouwerling. “This surprises me because reminders via e-mail help to cut costs, are more direct and a lot faster.”

Ouwerling: “We check DSO and the outstanding balance on a daily basis and compile a comprehensive report every month. Our parent company has established very strict requirements for these reports. Therefore, a major part of our time is dedicated to this undertaking. That is what we appreciate most.”

• DSO has fallen considerably
• Overdue balance from 40% to 20%
• Employee numbers fallen from 3 to 1 FTE
• Minimum amount of debts written off for problematic debtors
• Reminders possible in various languages and currencies
• Specific and customer-oriented contact