The core activity of BG Freight Line B.V. is short sea shipping and feedering, or regional transport and transit of containers for deep sea transport. 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.
G 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.’
‘Previously we used to work with a whole pile of lists. The highest amounts would be telephoned first, whereby the bottom of the pile never got dealt with. In the meantime, we telephone people a lot less, with reminders often being sent by e-mail, and we no longer use letters whatsoever.
Another factor that demonstrates the success of Onguard is that BG Freight Line has not sent a single reminder in paper format since 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.’
“Since BG Freight Line started working with OnGuard the established targets were realised quickly.”
Finance manager / BG Freight Line