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Standard Sales Terms and DSO

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  • #38954

    Chris Gambill
    Participant

    I am just starting a project which will look at the variability of  contract credit/sales terms and the impact on DSO. Has anyone worked on a similiar project? If so, would you be willing discuss the process you wnet though and any issues/problems you incountered.
     
    Thanks,
     
    Chris

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    #122137

    Patty
    Participant

    I am currently working on a project that is very similar.  Did you receive any feedback or do you have any to offer on your exisiting project?

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    #122138

    Sophy
    Member

    Hi,
    I did work on the project for which the primary CTQ was DSO. The other CTQ Revenue Leakage. We were looking at process re-engineering. CFPM was the way we chose. Extensive As-Is Process maps were drawn, Metrics were calculated and issues were noted. Process improvement was done by looking at improving each of the key metrics. Improving the performance for each of the key metrics were done as GB projects. At the end of it Should-Be process Maps were drawn.
    Te entire activity took aout 7 months to complete.
    Hope this helps
     
     

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    #122139

    BBMole
    Participant

    I worked on a project a couple of years ago that had DSO as the primary metric. It took about 6 months and we acheived a reduction of of circa 20% in the DSO figure. I would suggest that you need a willing finance and sales department, and the backing of the company to enforce revised credit sales/terms. There can be conflicts with the sales guys promising preferential terms which affect the DSO as a result.
    Good Luck
     

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