Alliant Consulting Aligning people, processes and metrics to meet your business goals.

REDUCE ADJUSTMENTS, WRITE-OFFS AND COLLECTION TIME for accounts receivables across 350 U.S. offices for this medical equipment company with $1.2 billion in annual revenue

Project Focus

  • Medical Equipment Supplier’s Patient Intake, Accounts Receivables and Collections departments
  • Assess revenue management operations, from intake through billing and collections, at representative locations
  • Identify collection performance barriers and opportunities
  • Design a high-performance revenue management model
  • Plan for and facilitate company-wide implementation

Client Gains: Financial and Operating Benefits

At four months following implementation:

  • 64% reduction in revenue adjustments
  • Cut suspended billing (>60 days as % of net revenue) by more than half
  • 42% decrease in accounts receivable >180 days
  • Reduced days sales outstanding (DSO) by 25%; four years later, original DSO >100 days had improved by another 25% for a total reduction of 50%
  • 25% improvement in productivity

Key Changes that Supported Client Goals

  • Refined revenue management and collections models and training program for immediate performance improvement
  • Used principles-based approach to operations model design, to achieve implementation success across the company’s diverse business environments and systems
  • Built culture of “turn-around” versus “deadline,” focused on avoiding backlogs and deterioration of accounts receivables – supported by quality reviews at key points to minimize delays and write-offs, and by positioning and training supervisors
  • Incorporated continuous process review and measurement reports to achieve ongoing improvements in revenue management, service, quality, and productivity
  • Tested the new model for validity in the poorest performing region – which then advanced to the 2nd best revenue management performance of 23 regions in just two months
  • Identified and implemented new model in the regions contributing 75% of the revenue adjustments and write-offs
  • Trained and coached 20 employees as change agents to implement the new model and perpetuate improvements throughout the remaining regions
Testimonials

"I also wanted to mention how much we appreciate all of the feedback that Alliant has given to (us). The strategic benchmarking analysis and evaluation that Alliant provided will now allow our company to establish leadership performance targets. This not only gives credibility to the data that we provide to our top management but validates that we are heading in the right direction with our key performance indicators. Alliant has also helped us understand the gaps in our lower performers and the implications to our internal/external customers. This prioritization will focus our efforts on opportunities that really matter. Thanks,"

VP, Global Logistics and Fulfillment

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