For a global company like CPL, stable cash flow is vital. Although this is true for any business, the scale and impact of late payments for a company with more than 4,000 customers become obvious very quickly.
Despite having robust systems in place, the lack of consistency in client payments made a strong case for YayPay’s automated AR system. Here’s what happened when CPL decided to make the switch.
CPL: The Problem
As a large global provider of recruitment and advisory services, it’s no surprise that CPL already had an AR system in place. However, the company’s Senior Manager of Invoice to Cash, David Martins, realised there was a gap in the AR process. As he states:
“IF I KNEW THE CAPABILITY THAT WE HAVE NOW I WOULD HAVE IMPLEMENTED IT 3 OR 4 YEARS AGO”
Specifically, CPL was vulnerable to late payments from clients, as the impact could escalate quickly and have a knock-on effect across the business. Therefore, CPL’s pain points could be summarised as follows:
- It required tools to meet critical KPIs related to outstanding payments and client account tracking
- Accounting staff needed more insights into customer accounts, such as payment habits and invoice tracking
- The accounting department wanted a platform that adapted quickly to change, allowing them to implement new systems and processes based on collected data
Understanding the Market
CPL already had AR systems in place, so justifying the inclusion of YayPay could have been a tough sell. Luckily, David Martins was aware of the idea of AR automation and the benefits it could offer. This meant that getting key internal stakeholders on board was relatively easy.
Along with access to more data, a major benefit of YayPay’s service is that it’s cloud-based. This allowed CPL’s IT department to free up internal servers for other business processes, in turn improving productivity and response.
The main requirement for David Martins and, in turn, YayPay’s main selling point was the data it provided. CPL’s sales teams needed more information to better understand their clients, so they could have greater clarity over accounts. While this would help CPL directly, it would also improve customer relationships by offering a more dedicated and individual service.
How YayPay by Quadient Improved Cashflow Security at CPL
YayPay by Quadient was able to seamlessly integrate with CPL’s existing AR systems, resulting in less impact than if the company had to completely overhaul its setup. Importantly, this meant CPL could start gathering in-depth customer data from the outset.
CPL’s sales teams used YayPay as a selling point for new and existing customers; specifically the improved sales transparency it offered. The sales teams could provide customers with valuable insights into their buying habits and accounts, which helped improve customer retention and satisfaction.
The company implemented YayPay in 2019 not long before the pandemic hit. Although this was a difficult time for businesses in any industry, CPL was actually able to increase its cash collection by 3.8%, a significant difference from the outlook faced by other industries. YayPay’s automation and data collection also meant CPL could quickly adapt to changes brought about by working and hiring habits, allowing it to respond to government regulations and industry effects.
Finally, and perhaps most importantly, YayPay gave David’s department the ability to collect and analyse real-time data that it could send across to other departments in the company. CPL uses three sales pillars as the cornerstone of its business model, and for the first time it could generate reports that collated sales data into actionable information.
All this translates to improved productivity for David’s department, and increased cashflow security and transparency. The benefits were almost immediately obvious, but YayPay’s adaptability came into its own during the pandemic. As David Martins states:
“If I knew the capability that we have now, I would have implemented it 3 or 4 years ago.”
Getting Started with YayPay by Quadient
CPL’s AR automation allowed it to do more with valuable data, improving its sales processes and cashflow security, and positively impacting its customer satisfaction and retention.
To find out more about how YayPay by Quadient could improve your company’s AR processes and account security, download the CPL case study today.
