Proactive credit control solution to answer late payment issues in the logistics sector 

A breakthrough in the field of credit management has arrived in the form of what is believed to be the world's first pro-active standalone credit control software system, which in field trials reduced one company's debt by 97%.

The solution is expected to have a major impact within the transport and logistics sector, currently rated as one of the worst for late payment by the latest Quarterly Credit Management Review.

According to the QCMR report from the Credit Management Research Centre at Leeds University, close to 50 per cent of all customers of logistics firms are still consistently not paying their invoices on time, with most averaging 70 days beyond the due date.
 
Prior to launch, the new Topaz Credit Control module had already demonstrated its ability to reduce the 90 day debt factor for a leading recruitment company, traditionally a sector like that of logistics in that it is racked by cash flow problems, by 97%.

Developed by Topaz Computer Systems, a supplier of financial, payroll and HR solutions to bluechip clients such as Imperial Tobacco - and Woodland International in the logistics sector - the Topaz Credit Control module can be integrated with any leading system.

What makes the application different from anything else on the market is that it has applied the principles of CRM to credit control, a situation which has moved the module up several gears from traditional accounting based solutions.

David Carter, the accounting software guru, described the system as "an outstanding piece of work".

"It is hard to believe in this well trodden world of accounting ledgers, anyone would still be able to come up with a truly original and innovative product, but with their Credit Control module Topaz has done just that," he wrote.

Journalist Carter was won over by Topaz Credit Control because it provides a 360-degree view of all transactions, taking the proactive approach rather than leaving the credit controller working out what to do next.

The system does this by tracking every transaction that takes places between the supplier and the customer - not just financial transactions such as invoices and payments but every single conversation, every promise, every "event".

As such, Topaz Credit Control supports the entire credit lifecycle - from credit checking, credit insurance risk analysis through to promised payments, chase letters and copy invoices. Every event or process is checked through the credit controller's workflow with in-built escalation procedures and visual management reporting "dashboards".

The Topaz module scores time and again with innovative features including -

- Proactive management providing constant monitoring of accounts, so flagging up issues in advance and buying time to prevent them becoming a problem
 
- Workflow and escalation - with events placed on the credit controller's diary and, when not processed within a specified time period, the task is automatically escalated to a colleague as part of a defined hierarchical structure

- Query management involving allocating a user definable query code

- Direct debits offering totally hands free approach to cash collection

- Promise to pay, where the system makes a note of promised payments against specific invoices and analyses the effectiveness of the promises

- Ongoing monitoring of client's creditworthiness, so assessing levels of risk at each stage.

"We believe that our Topaz Credit Control Module will have a major impact in the transport and logistics sector which has long been plagued with the issue of late payment", says Eddie Stanley of Topaz.