How to Optimize DSO and DPO in Procurement using Process Mining?
Optimizing Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO) is crucial for any procurement process as it directly impacts...
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ACCOUNTS RECEIVABLE PROCESS
We capture data from your accounts/ ERP/ invoicing system and record all process events from Record-Goods-Issue to Clearing of Invoices. From this data, we re-create a model of the entire Accounts Receivable Process, thereby Improving working capital, mitigating credit risk while cutting costs with the Ploigot’s Accounts Receivable (AR) Process Mining Platform.
By adding case attributes such as key accounts, invoice details, payment terms, cash discount dates, transport conditions to the model you can see where mistakes occur, respective time stamps, which employees are involved, or which vendors follow which process variations most frequently.
Pinpoint where changes need to be made and focus your improvement efforts to bring the best results, like working capital optimization or reduction of lost discounts, etc.,
How it Helps
01-Credit Risk Mitigation
Ploigot examines your AR process and continuously checks for credit limits. It then either dynamically identify missing information or discovers change in customer behavior and then assigns the recommended limit to a specialist for action.
02-Working Capital
Days Sales Outstanding should be low as possible in order to free up working capital. In this case, late payments is the execution gap with the biggest impact on the working capital. This could be happening for a number of reasons — incorrect invoices, incorrect goods delivered or even just financial difficulties on the client side.
03-Reduce Risks & Costs
Monitor the debt-to-sales ratio of each transaction and identify bad ratios. This reduces overall risk, analyses cost per collection for each account receivables.
Avoid loss of discounts, delays in receivables, etc., Poligot’s automation solutions will help you reduce overall cost per receivables.
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