Dun & Bradstreet Portfolio Manager alerts a multi-national team to its biggest risks – and greatest opportunities
USG People provides specialized resource planning services in Europe, focusing on the segments general and specialist temporary employment, HR services and customer care through its independent operating companies in ten European countries: Belgium, Germany, France, Italy, Luxembourg, Netherlands, Austria, Poland, Spain and Switzerland.
USG People helps people find the job that suits them best while at the same time providing its clients with the best possible employees. And by helping its clients connect with the best candidates, USG People helps them to operate as effectively as possible with well-qualified employees.
The Challenge: Managing More Effectively the Credit Risk of Customers
As a result of the economic crisis that began late 2008, USG People’s customers had greater limits placed on their credit by the company’s credit insurer, and some customers had their credit insurance cancelled. Moreover, it was difficult to get new customers accepted by the insurer. “We want to serve our clients at all times, and so a large portion of our bills were no longer insured,” said Dirk Braet, Group Credit Manager at USG People.
To address this challenge, USG People launched a new credit initiative to help address its customers’ credit needs and, at the same time, reduce its own credit risk. As part of the effort, USG People defined a number of key performance indicators (KPIs) to create more transparency in its communications with insurance companies. The company also implemented some best practices in corporate credit management and installed a cash collection tool for more efficient monitoring of invoices. And to ensure that the company understood and managed effectively its credit risk, USG People adopted Dun & Bradstreet’s Portfolio Manager.
The Solution: Customer Insight with Portfolio Manager
Portfolio Manager is an online analysis tool that merges USG People’s customer receivables data with Dun & Bradstreet’s databases to provide clear insight into the company’s portfolio of customers. It enables USG People to pinpoint the main areas of opportunity as well as risk, so the company can better target its credit management resources and make more informed credit decisions, based on the company’s own unique circumstances. USG People’s various departments uploaded their information weekly into Portfolio Manager. Their data was combined and enriched by Dun & Bradstreet, which matched USG People’s debtors and customers with its global business data using the Dun & Bradstreet D-U-N-S Number. Portfolio Manager provides USG People with reports highlighting the potential risks of its customers, such as those who are most at risk of delinquent payments or failure.
The Portfolio Manager also has built in system of alerts that informs USG People when its customers reach a higher risk level. Equally important, the system also alerts the company when a customer’s credit risk improves, which provides an opportunity to expand business with that customer. ‘We can monitor all movements in our portfolio very closely,’ Braet said.
Results & ROI: Reduced Risks, Increased Opportunities
Today, USG People is able to identify and perform much better follow-up to its risky customers, Braet said. The company has become especially adept at addressing customers who score poorly both in terms of failure risk and payment behavior. ‘Thanks to Portfolio Manager, our share of risky customers has decreased by 85 percent in this category since 2009. Braet said. “We have been able to proactively mitigate our risk and reduce our losses. Portfolio Manager has definitely lifted USG People credit management to a higher level and we appreciate the way that Dun & Bradstreet helped us think creatively to create a solution that addressed our specific needs.”
USG has also seen two other important benefits from Portfolio Manager. First, the information and insight it provides has enabled the company to negotiate better terms with its credit insurers. In addition, the insight into its customers’ group structures and corporate linkages has enabled USG People’s marketing department to expand its cross-selling.
For more information on USG People please visit www.usgpeople.com