September 2010

Another Recession?

of New York

Another Recession?

George responded by saying, The recent economic recession was truly a wake-up call for senior management throughout the world especially here in the United States. The recession hit us hard and hit us fast. There most certainly were signs that we were heading into troubled waters, but what did we do and when. Since we were unsure as to the length of our financial challenges yet to unfold, it was extremely important to implement a working capital plan to ensure we are in a strong financial position as we weather out the economic storm. The Credit function plays a very important role in managing working capital and will be a major contributor to ensuring the financial success of the organization throughout tough recessionary times. Accounts receivable and inventory consume a very large portion of our firm’s working capital. If you never thought about this, the Credit Department holds the power to commit those short-term resources. The most important resource we commit is that of our company’s short-term investment in accounts receivable, as it resides right below the cash account. The bottom line, accounts receivable is the second most liquid asset which can be turned into cash more efficiently if managed properly through tough economic times. In order to manage the investment in accounts receivable, we were required to implement policy changes especially turning over that investment quicker. In troubled financial times, organizations like ours place a major focus on Days Sales Outstanding (DSO), cash collection percentage, billing efficiencies, risk mitigation, cost containment and delinquencies. We planned properly and implemented our initiatives throughout the organization. Again, credit and collections continue to play a critical role in improving our organization’s working capital.

We asked George...Based on the economic recession, what credit policies and/or procedures have you and Anixter implemented to mitigate losses? Also, what policies and/or procedures have been implemented to strengthen Anixter’s position if another recession ever occurs?NACM Credit Executive

of the Year 2008

George Schnupp, CCEAnixter Inc.

In the World of Collections

Get your money FASTER!!All we need is your Company Name, Bank Name, BankAddress, Routing Number and Bank Account Number.

Call or e-mail Patti Stelter at 800-873-5212 or pstelter@commercialcollection.com for more information.

ACH – Automated Clearing House will transfer the money out of our account and deposit it into your bank. A statement is then e-mailed telling you that the money

is in the account and what it represents.

Horoscope

If there is a topic you would like to see appear in our newsletter, please contact Judy Mattioli at:Phone: 1-800-873-5212 Fax: 1-800-873-5211

jmattioli@commercialcollection.com / www.commercialcollection.com

Answer to last Brain Teaser: The T is being dropped into the C which represents the Boston Tea Party.

Anyone who supplies materials or services for the improvement of property needs to learn the basic rights afforded under applicable mechanic’s lien law. These statutes are intended to protect contractors and material suppliers who contribute to the value of the owner’s property through labor or materials supplied to a construction project where such materialmen would otherwise be left without recourse due to non-payment.

While the basic concept of the mechanic’s lien is universal, every state has created a different statutory scheme to govern who is entitled to a lien and the process involved. Notices of commencement, preliminary notices, parties to notify, time frame to file the lien, and time frame to file a foreclosure action differ from state to state. Failure to properly identify the property owner, general contractor, and correct address of the project can be detrimental to the validity of any lien filed.

Need to know more?

Contact: Bob Landel at Commercial Collection Corp of NY blandel@commercialcollection.com800-873-5212 ext 256

What is the opposite of “I AM NOT LEAVING”?

Our Thanks to George Schnupp, CCENorth American Director of Credit

Anixter, Inc.

Changes come on many different fronts as we continue to improve working capital. One of the major areas where we made an impact is to turn over the delinquent accounts quicker to CCC so that we can increase our opportunities to be paid promptly soon after placement. Another area was to educate the sales organization to the importance of DSO and prompt payment. Further emphasis was also placed on being increasingly more diligent in our risk analysis prior to the sale. We also focused on our many different billing platforms and executed enhancements to decrease the order to cash period. In the trenches, the most important of our initiatives was centered on the day-to-day efforts to collect the cash. As the old saying goes, “Cash is King”. We continue to look for ways to improve our processes to support sales in order to grow our organization’s revenues, profits and cash. Our credit teams continue to Shoot, Communicate and Move to improve the working capital position of our company. Our mission is to continue to be the police of the organization and to ensure the highest quality of our investment in accounts receivable. We will continue to look for better ways to improve our processes that lead to improvements in cash collections and the reduction in our department’s operating costs. These are truly tough times, but our staff is even tougher. As everyone is well aware, it is the tough that keep marching on!

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Virgo Libra

1. Ms. Maria Limarenko (Parsippany, NJ) 2. Ms. Angela Gordy (Sumter, SC)3. Ms. Brittney Tims (Mountain View, WY)

4. Ms. Angela Ferriter (East Syracuse, NY) 5. Ms. Donna Steepe (York, PA)