1

Helping a Car leasing & fleet management company

(MNC) break the shackles of traditional Order to Cash

(OTC) processes and catapult them into growth trajectory.

2

Who they are and what do they do

Our client is a 100% owned subsidiary of an international consortium led by the

Dutch company specializing in vehicle acquisition and fleet management with

headquarters in Netherland.

Originated in 1963 in a small office in Amsterdam , our client now Operates in 32

countries with global revenues of more than EUR 455 Millions and became the first

organization in the leasing & fleet management space to manage more than 1.5

million cars worldwide.

India operations commenced in 1999 which is now segregated into 3 zones (North,

West & South) with more than 700 corporate and SME clients.

Their India headquarter is in Delhi NCR with facilities in major cities like, Bangalore,

Delhi, Mumbai, Ahmedabad, Chennai, Kolkata etc.

India revenue for year ending Dec ‘16 stood at approx. INR 450 Cr.

Post having the ownership shifted from a Volkswagen led consortium to a one

led by Denmark largest pension fund, Our client’s India operations came under observation.

An aggressive YoY growth plan of 22% was chalked out with a mandatory diktat to bring about

considerable cost efficiency while improving processes.

Finance function categorically stood out due to decentralized critical processes such as invoice

submission, NOC issuance, cash application etc., inadequate revenue assurance controls,

invoice correctness, higher debtors to billing ratio, invoicing delays with AR accumulation in the

maintenance & reimbursement billing etc.

These anomalies were resulting into, delays in quote preparation, revenue booking, 30 days of

invoice submission cycle, Asset transfer NOC being issued fanatically, debtor vs billing ratio of

85%, more than a month’s revenue in un-adjusted payments (48 Cr), pending reconciliations,

high suspense account balance, manual document management, unauthorized credit enjoyed by

SMEs, Manual invoicing etc.

Making support process such as order to cash robust, predictable, cost efficient and

professionally governed was vital If they were to grow as per plan.

This is where Mynd as a subject matter expert came into the scenario in 2016 3rd Quarter

to ensure the process set up (lift & shift) and transformation is carried out from order

management till reporting while ensuring no disruption in day to day OTC deliverables.

Revenue

Leakage

Process

De-

Centralized

Delays

Billing & Coll

Where the need arose

3

TRANSFORMATIONCentralized

No Manual

Centralization• Transactional and redundant processes such as foreclosure, NOC,

termination, quote making

• Cash application, invoice submission, collections and reporting

Standardization• Invoicing & Invoice formats with customer

• SME payment process

• Quote release & Dealer PO issuance

• Maintenance & reimbursements invoicing

• Reconciliation and Balance confirmation

Controls & Governance• Cash application verification

• NOC issuance & vehicle release

• Billing Quality & Revenue Assurance

• Monthly and quarterly reviews

Cost Optimization• Resource Optimization

• Process consolidation e.g. Foreclosure & Termination, order

mgmt. etc.

• E-invoicing

• Centralized & backend dunning process

Scalable Model

• Automation

• SLA based service delivery

• SSC utilization

• Offshore processes

To start, we deputed a

team of Subject matter

experts to study the end to

end Order to Cash

process.

After 6 weeks of in-depth

study and analysis of all

process, SOPs and

process documents, we

identified some critical

improvements which will

impact the outcomes

What was to be done

1 2 3 4

Order to Invoicing

Invoice Submission

to Collection

Cash App & Reporting

Other Ancillary Process

Order to Invoicing

The quote to PO process & reimbursement

invoicing along with Revenue leakage and

Billing quality assurance was targeted.

Invoice Submission to Collection

Invoice Submission delay, recording

& staging along-with robust dunning

process

Cash App & Reporting

Standardizing the collections

accounting process, Suspense

account along-with unadjusted

payment was targeted

Other Ancillary Process

Termination & Foreclosure, NOC

issuance and resale process was

targeted

12

34

6

Early Stage

Attacking first thing first, we started with :

- Focusing on reducing the average submission &

collection days

- A team of subject matter experts was relied upon toensure the unrelenting service delivery and knowledge

gathering at the same time.

- Ensure that basic reporting of the OTC process is in

place, such as invoicing, ageing, collections, accounting

etc.

- Distributed team PAN India to control the delivery and

customer specific knowledge acquiring.

- Centralizing all transactional processes at SSC at Mynd

office such as Invoicing, cash application, foreclosures

and reporting.

- Configured Generic Email IDs to track Quote & PO

release, payment advices, TDS certificates, foreclosures

etc.

- 100% small and medium customers (SMEs) have been

put on ECS / ACH payment mode to eliminate any unduedelay in payment from low non-strategic customers.

- Central repository of all supporting documents needed for

maintenance & reimbursement invoicing to avoid any

latency in revenue recognition

Improved StageAfter successful completion of 1st stage and running it for

a quarter ,we are now accomplishing:

- Focusing onto improving some key OTC metrics, e.g.,

Quote & relative PO TAT, timely invoicing & quality,WASD (weighted invoice submission days), DDSO Vs

DSO, Unapplied Payments and Reconciliation.

- BQA (billing quality analysis) has been deployed to

ensure the invoice correctness before it is billed.

- All process documents and SOPs have by producttype and key customer type.

- Document Customer specific knowledge in shared

repository.

- Centralizing Quote & PO release, Asset release NOC,

invoice submission etc. at Mynd SSC

- Only 2 satellite employees out of centralized location

for all customer specific front end requirements, e.g.,

dispute resolution, follow ups etc.

- Standardizing invoice formats with customers to rule

out the need of any manual invoicing. And feeding thesame in systemto ensure compliance.

- 100% E-invoicing penetration in small fleet customers

to reduce invoice submission time and cost associated.

Advanced StageNext stage of the continual improvement process will primarily

focus on automating the crucial process to ensure accuracy,

revenue assurance and compliance and shall include::

- Completely standardized OTC process across products toensure rare exception management.

- Completely automated & centralized dunning process with

auto mailers, reminders etc. for better consistency,

effectiveness & efficiency. The satellite staff to be used

integrated managed teams.

- A customer centric UI to automate foreclosure & termination

process, which is expected to bring down the cycle time

from 6 hours to 10 Minutes by eliminating any need of

human intervention alongside.

- A ticket and workflow based Asset release system toeradicate any compliance concern or revenue loss.

- System and process controls embedded for each aspect of

OTC process such as on time quote release, PO release,

invoicing, submission, collections, cash applications,

reconciliations, balance confirmation and reporting.

- A detailed and data driven process with deeply integrated

analysis based decision making assistance in term of

performance management, customer assessment etc.

How did we do it

LocationsCentralization

23Nos.

01Days

07Days

90%

3 Days

Manpower Consolidation

Quote to Invoice Cycle

Order Mgmt

RevenueLeakage

IdentificationInvoicing

Invoice Sub. TATInvoice Submission

Debtor to Billing Ratio

Collection

Un-AppliedAmount

Cash Application

ForeclosureProcess Time

Other Process

16Nos.

04Locations

77Lakhs

01Location

00Lakhs

30Days

69%

48Cr.

09Cr.

1Day

03Days.

9

• Repository for dealer quotes refreshed consistently for faster quote release.

• Central repository for all Invoice soft copies, Foreclosure & Termination Statements for easy retrievals

• Standardized the work flow and the format for NOC issuance

• Centralized mailbox for activities such as reconciliations, payment advises, foreclosure requests etc.

• Focused selling of “One EMI” product so as to eliminate the capital blockage in insurance, maintenance etc.

• Virtual Accounts assignment for all dealers to ensure accurate and efficient payment accounting.

• Escrow Account provision for high risk customers to pave the way for quality sales.

• The ECS / ACH instructions made mandatory for small fleet customers.

• E-billing / submission in case of small fleet customers

• Standardized Invoice formats shared with new order confirmation forms to avoid any differences later.

• Standardized follow up mails format for 1st, 2nd and 3rd follow-ups. With pre-defined escalation matrix.

• Regular visit of top client in a month / quarter.

Value Adding

The success of the efforts will be assessed and the learning will be applied in order to

further initiate the advanced stage of Process Transformation which will drive measurable

value through individual OTC process while moving towards Centralizing, No

Manual.