Why Are Your Customers Not Paying You?
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Do you know why your customers aren’t paying you on time? Could they have a good reason for not paying, such as a problem with your invoice?
BP Lubricants, a downstream division of the BP Group, established a project to find out why it took so long for customers to pay their invoices on time and found simple but powerful solutions to improve cash flow and reduce the number of overdue invoices.
The solutions are now embedded in business as usual, according to Anne-Sophie Andre, Order to Cash Capabilities Manager at BP Lubricants, and has succeeded in halving the average payment delay across all invoices and has taken over $3 million off the balance sheet. There have been soft benefits too, says Anne-Sophie, as the improvement work freed up staff to focus on value adding activities.
For their work, BP Lubricants won an Honorable Mention for a Process Improvement Project in Service and Transaction at PEX Network’s European Awards announced earlier this year.
In this PEX Network video interview, Anne-Sophie, explains in further detail what they did, the results achieved and lessons learned along the way.