A Million-Dollar Boost

Volt Information Sciences Inc., a New York City-based staffing company, is among the organizations that have turned to collections software to boost efficiency. Operating more than 300 offices across the United States, Canada and Europe, the $1.6 billion company serves more than 10,000 customers ranging from microbusinesses to Fortune 100 concerns. Managing so many accounts -- and 40,000 contract employees -- represents a huge challenge, says Terry Jordan, credit and collections manager for Volt in Orange, Calif.

In the past, Volt's credit managers found themselves buried in paper forms and stale data. By the time they identified a problem, the company was already in reactive mode. In August 2003, Volt turned to specialized collections software from Emagia. Today, the system, which hooks into an accounts receivable module from Oracle-PeopleSoft, provides daily updates on account status. When Volt's 16 collectors come into work in the morning, "they have the latest information at their fingertips," Jordan says. That includes aging data as well as sales transaction and cash payment information that is only a few hours old.

The system has proved to be a boon. It provides collectors with a task list that's updated automatically as conditions change. By using specific business rules based on Volt's collection strategy, collectors can view reminders about which actions they need to focus on that day. "If an account is overdue, they can take swift action. If a customer has just paid a bill, we can extend additional credit," Jordan explains. What's more, Volt can alter business rules and collection policies on the fly.

The net result? In just over a year, the company has reduced bad debt by $750,000 while trimming overtime pay by $150,000. In addition, the system has helped collectors and management work more strategically through the use of analytics. For example, a cash forecasting tool allows everyone to view management objectives and know how well collectors are doing on a day-by-day basis.

Jordan says that the next wave of Volt's strategy will center on improving up-front credit-evaluation problems. "The goal is to establish a competitive advantage within our industry," she explains.