Customer Service, part of the value proposition of any company.  Here is my story with three organizations, large companies, listed companies.  All three need to improve their customer service, but two of them provided “truly despicable service”. Continue reading »

Receivables and Credit

Unless you’re a cash business, you will need to extend credit.  How you manage your receivables will determine how much cash flow you ultimately have.  When was the last time you calculated your Days Sales Outstanding (DSO)?  Have you ever heard of the Collection Effectiveness Indicator (CEI)?  I hadn’t until I did research on this small article.  So I’ve asked the members of Proformative to chime in.  Here is what they have said.

Your monthly reports should include a series of  key performance indicators (KPIs) or metrics.  If these two metrics aren’t part of your monthly (with add-on’s to many accounting systems and/or Excel, you can easily build them into a report) maybe your should add them?  I like looking at some metrics on a daily and weekly basis.  Top is Cash, A/R, A/P and Inventory levels.  I also want to see what’s in the pipe, so that’s Sales Orders and Purchase Orders.

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