Oracle Credit Management: An easy solution for evaluating customer credit worthiness Gaurav Tomar...

Oracle Credit Management:

An easy solution for evaluating customer

credit worthiness

Gaurav Tomar Usha RaghavanTIBCO Software Inc. Ubex [email protected] [email protected]

Jan 17, 2007

2© 2007 UBEX Corporation and TIBCO Software Inc. .

Agenda

Introduction

Process Overview

Issues

Solution Overview

Challenges

Costs/Benefits of Implementation

Conclusions

Q&A


TIBCO Software Inc.

TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business.

With over 2,500 customers, TIBCO has given leading organizations around the world better awareness and agility—what TIBCO calls The Power of Now®.

TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains.

Visit www.tibco.com for more information


Process Overview

Prospects/customers

Sales Team

Customers

Credit Management

team

Recommendation

Decision


Terminology

Party – A party is a person, organization, or collection of parties that can enter into relationships with other parties.

Customer/Account – The accounts are associated to the party and all transactions (orders, invoices etc.) are linked to account.

Sites – The locations (seen as addresses on customer form) are sites. E.g. Bill To, Ship To etc.


Current Scenario

Party (3COM – LA)

Customer/Account

Bill to Site

Parent Party3COM(Parent)

Parent Customer/Account

Reporting Relationship

Credit Limit at Customer level in different currencies

Party(3COM – EU)

Customer/Account

Bill to Site


Issues

Business Issue

No global visibility of credit worthiness at customer parent level

Credit approval is manual

SOX documentation

Occasional occurrence of shipping goods to bad debt customers

Delay in the shipment due to delay in the credit validation of the customer

Possibility of storing redundant customer Credit data

Possibility of data entry error

Disconnected and manual processes


Future Scenario

Credit Limit at parent party level in USD will be shared by group of customers in hierarchy

Party Relationship

Party(3COM – LA)

Customer/Account

Bill to Site

Parent Party3COM(Parent)

Parent Customer/Account

Party(3COM – EU)

Customer/Account

Bill to Site

Bill to Site (Optional)


Solution Options

Option Advantages Disadvantages

Implement 3rd Party Software

Short implementation time Disparate systems

Licensing cost

Retraining of users

Enhance existing system

Proprietary processes supported Long development time

Implement Oracle Credit Management

Short implementation time

Product flexibility helps support proprietary processes

Retraining of users

New module


Oracle Credit Management

Oracle Credit Management, a member of receivables and revenue management helps to improve the timeliness of the credit decision making process based on the credit data collected for customers and prospects. It helps to achieve:

Established credit policies and standards for customers and prospects across the enterprise

Periodic credit review and assessments

Flexible credit scoring models for customers and prospects

Monitor existing customers’ payment practices throughout the business relationship

Seamless integration with Dun & Bradstreet


Solution Overview

Prospects/customers

Sales Team

Customers

Credit Management

team

Recommendation

Decision


Processes Supported in OCM

Credit limit at the parent party level

Approval process within Oracle

Automated on-Line Credit Application

Checklist to identify required and optional data points to be collected during a credit review

User-defined credit scoring models

Case folder, central repository for credit review information

Recommendations for each credit applications

Performance measurements of customers

Single currency credit limit (USD) in a multi-currency setup

Periodic credit reviews


Implementation Features

Credit limit for group of customers at the parent party level

Parent Party level credit limit in single currency

Classify customers for credit - High risk, Medium risk, Low risk Multiple checklist for combination of Credit Classifications and review type Automate recommendations for low risk customers

Intelligent Review and Approval Routing Credit applications for review and approval by region (US, APAC, EMEA) Enable credit application approval from multiple credit managers

Custom programs Facilitate initial credit limit determination Build customer relationship programmatically Automation of initial credit application


Setup – Credit Scores


Setup – Checklists


Setup – Credit Analyst Assignments


Credit Application


Analysis – Case Folder


Analysis - Case Folder Review


Performance Review


Challenges

Relatively New Module

Customizations specific to TIBCO

Credit worthiness management modeling

Defining new business process

Coordination and Training globally with different business units


Benefits of Implementation

Completely integrated credit review and approval process

Real time information available

Minimized data entry error

More in sync data

History of credit increments

Sox related requirement fulfilled

Better customer relationship


Costs of Implementation

Infrastructure No additional hardware and instance

Licensing No additional licensing required for users

Implementation Implementation time is short

Training Minimal


Conclusions

Better business process

Improved productivity

Assessing credit ahead of time helps to make better business decisions


Ubex Corporation

Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications

Ubex is an Oracle Certified Partner

Visit Booth # 14 today or www.ubex.com for more information Enter for a chance to win Nintendo Wii !!!

Oracle Credit Management: An easy solution for evaluating customer credit worthiness Gaurav Tomar...

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