Working capital is of critical importance for every organisation: if it is not at a sufficiently high enough level, you can get problems with cash flow. Three factors are important when it comes to working capital: stocks, creditors and accounts receivable. Of the above, the latter group is often underrated.
Jolanda Ooteman is responsible as Credit Manager for accounts receivables management at Fource Automotive, importer and distributor of parts for the automotive industry. She understands how important it is to manage debtors effectively to ensure the organisation can maintain a high level of working capital. Visma | Onguard talked to Ooteman about her experience with accounts receivable management within the automotive sector. She explained how she uses credit management software to ensure the processes within Fource Automotive run smoothly.
Accounts receivable management within automotive
Ooteman has worked as a credit manager in the automotive sector for many years: “It is a sector that is in flux and in which trends succeed one another at a rapid pace. You only have to think about all the technology to be found in a modern car and, of course, the self-driving cars that are about to become a reality on our roads. There is a major focus on how to respond to these trends among organisations within the sector. This makes sense since it is a completely new market with many unknowns. It is important that the credit management department develops alongside the business and constantly considers risks as well as customer relations. What I’m noticing in the sector is that the potential for credit management to have an impact is growing all the time. This is because credit management is a very important aspect within the organisation, in particular for working capital and customer satisfaction.”
Interested in minimizing risk in your order-to-cash process? Read our blog.