| Title: | US_SALES_SERVICE |
| Notice: | Please register in note 2; DVNs in note 31 |
| Moderator: | MCIS3::JDAIGNEAULT |
| Created: | Thu May 16 1991 |
| Last Modified: | Tue Sep 03 1996 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 226 |
| Total number of notes: | 1486 |
(permission received by the author)
I N T E R O F F I C E M E M O R A N D U M
Date: 17-Jul-1991 08:59am EDT
From: Bob Martin
MARTIN.BOB AT A1 at USEM at PKO
Dept: U.S. Credit
Tel No: (508)493-4947
TO: See Below
Subject: Q4 FY91 A/R PERFORMANCE - U.S.
The results of the Q4 Accounts Receivable performance are as follows:
DSO
The U.S. Trade DSO was reduced 3 days, from 72 days in Q3 to 69 days
in Q4.
Q4 FY91 Q3 FY91 Q4 FY90
69 72 74
This is the lowest DSO since Q4 FY89 when it was 68 days!
AGING
The Debit Aging also showed improvement for both Systems and Services.
Q4 FY91 Q3 FY91 Q4 FY90
Systems 13% 19% 18%
Services 20% 25% 24%
Both Aging % should be below 10%.
SUMMARY
The improvements in the Accounts Receivable performance can be
attributed to the following:
o Account Managers and Line Managers are more involved and
committed to resolving customer issues that are impacting
projects.
o Increased communication and cooperation between Finance,
Administration and Operations have identified and resolved
customer issues more timely and effectively
o Through Account Management and the increased awareness
focused on asset management, our customers are responding more
timely.
Please extend to your Staff our sincere appreciation and thanks for
all the help that made this fine performance possible.
Distribution: (deleted)
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 28.1 | Pay me now.....or | COOKIE::LENNARD | Rush Limbaugh, I Luv Ya Guy | Tue Aug 13 1991 14:10 | 9 |
I'm not an MBA, but to me the size of the A/R problem appears
monstrous.
Assuming that a lot of this money actually exists, and is sitting
in someone else's piggy bank making money for them.......why can't
we offer some kind of an incentive to start that money flowing
our way? I'm thinking in terms of some kind of a discount scheme.
...or do I just not understand the complexities of corporate finance?
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| 28.2 | re. DSO and incentives to reduce it | USEM::CHERNACK | Where is the fountain of youth? | Fri Aug 16 1991 15:44 | 30 |
(permission received by author)
I N T E R O F F I C E M E M O R A N D U M
Date: 16-Aug-1991 10:24am EDT
From: Bob Martin
MARTIN.BOB AT A1 at USEM at PKO
Dept: U.S. Credit
Tel No: (508)493-4947
TO: KENNETH CHERNACK @PKO
Subject: RE: US SALES CONFERENCE REPLY
Thanks for your interest and concern with Digital's Accounts
Receivable. In the U.S., we finished the year with a DSO (Days of
Sales Outstanding) of 70. This is about $150M higher than it should
be.
We have placed more emphasis on improving the accuracy of our
invoicing and making sure our customers receive what they want and
when they want it.
A cash discount to pay sooner would not help our situation for the
most part. In addition, cash discounts are very expensive and
difficult to administer.
Thanks for your concern.
Regards,
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