In the field of cash performance, benefiting from an efficient cash collection process is crucial!

1) Cash collection starts with the sale itself.
The more complex the product or service sold, the more the sales force must be trained on technical stakes and surrounded by experts throughout the sales process.
In other words, in order to recover the cash as quickly as possible, you must avoid ambiguity on what you sell!

2) Cash collection implies clear “ownership” from all Order to Cash (O2C) stakeholders.
In case of an unclear RACI, of doubts and misunderstanding on the roles and responsibilities of stakeholders at each O2C step, the cash collection will probably be a lengthy process.
 
3) Cash collection goes hand in hand with a strong “cash mindset” within the organization.   
This cash mindset requires having a structured Credit Management, with appropriate workflows and KPIs, which interacts smoothly with Sales and Finance teams.
The processes defined from order to cash collection must be reflected in the various systems (CRM, project management tool, ERP and credit management tool).
 
At Mageia Partners, we regularly support our clients in their WCR optimization projects (AR, AP, inventories), sometimes with a focus on cash collection process improvements.

This topic is particularly scrutinized by our PE-owned clients and this is reflected in our discussions with major PE funds.