SAP Advanced Credit Management: dynamic credit management with SAP S/4HANA

Challenge

The group, an important international player in the chemical and pharmaceutical sector, needed to implement a single credit management process on a global level, ensuring the following benefits:

  • alignment of all countries to the Corporate Policy
  • reduction of the risk of receiving collections beyond deadline
  • increase in the level of quality and reliability in the collection process
  • risk mitigation in the evasion of supplies to high-risk customers
  • tracking of changing credit conditions with workflow of processes over time

Solution

In order to meet the requirements expressed by the customer, Qintesi suggested the implementation of the new Advanced Credit Management functions available from the SAP S/4HANA 1809 release, proposing a modular design approach, based on an agile SAP Activate methodological framework, with the aim of minimizing risks and optimize timing.

In the Discover phase, an assessment activity was carried out aimed at detecting the starting situation of credit management within the group. The assessment activity was divided into three pillars:

  • a system reverse engineering to verify the existing Credit Management configurations
  • a survey sent to all the countries to bring out the local credit management policies
  • a series of interviews with the business representatives of the parent company
    •  

At the end of the Assessment phase, the Qintesi team prepared a Solution Design document of the model to be implemented and an Executive Summary of the solution to launch the presentation workshops to all affiliates.

To support the Prepare and Explore design phases, a complete prototype of the solution was configured and FIT/GAP Analysis sessions were organized to bring out any local specificities of the individual countries.

The launch of the new Advanced Credit Management process was segmented into three release groups by replicating the Realize, Deploy and Run phases of the solution for each group.

The release groups were organized by bringing together countries with common specificities and with an increasing level of complexity and business size.

The implementation of Advanced Credit Management features was accompanied by the development of a series of dashboards in SAP Analytics Cloud to support intelligent monitoring and continuous improvement of the new credit process.

Results

  • Dynamic management of credit and risk classes
  • Differential assessment of customer scoring and reliability (internal process and external rating agencies)
  • Credit decision-making processes entirely tracked through workflow
  • Average DSO optimization
  • Strategic Decision-Making Reporting for continuous improvement in credit management

Statement

An incremental path that has made it possible to standardize and optimize credit management on a global level, to increase transparency and compliance in decision-making processes and to guarantee the Corporate Finance function a central role in controlling credit risk dynamics.

Francesco Pelella
Associate Partner - Qintesi

Le informazioni contenute in questo documento sono di proprietà.
Copyright © 2014 Qintesi S.p.A. Tutti i diritti riservati.

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Finance


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    IMPLEMENTED MODULES

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    SAP Advanced Credit Management