CASE STUDY

Improving Revenue Integrity for a logistics operator to improve Cash Flow

Our client, an international company offering end-to-end logistics solutions asked us to assess potential issues of Revenue Integrity throughout their processes & services. A targeted approach led to process improvements & automation, generating over 8M€ of annually recurring revenues that were previously leaking.

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Strategic Context

Strong downward pressure on results due to COVID-induced market fluctuations

Limited pricing power on base service leads to need for alternative revenue streams

High unallocated production costs not covered by revenues

Challenges
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Challenges
  • A significant portion of services provided to the customer were not invoiced, either not paid due to insufficient information provided to customers. 
  • Significant manual effort required in most processes leading to a culture of fire-fighting rather than structural solutions. 
  • Limited controls on end-to-end Order-to-Cash process leading to a lack of structural visibility.
Objectives
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Objectives

Our objective was to identify the most important issues leading to a lack of cash-in for the services provided by the company and structurally resolve these issues, leading to significant & recurring bottom-line impact. 

  

  • Long-list identification & quantification of issues leading to potential revenue leakage, because of either non-registered services, non-invoiced services or unpaid invoices. 
  • Selection of the most important & urgent topics to solve issues. 
  • Design & implementation of structural solutions, embedded into the client’s organization.
Our approach
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Our approach

Short Identification phase:

  • Workshop-, interview- & data-based approach, supported by BI to identify & quantify opportunities throughout the Order-to-Cash process. 
  • Prioritization and selection of opportunities to tackle based on effort-benefit analysis. 

Solution phase:

For each of the selected issues, the following phases allowed to come to a structural solution: 

  • In-depth problem analysis & process analysis, incl. IT tools 
  • Design & start implementation of ad-hoc processes & ways of working, to start generating benefits 
  • Automation of new processes & fully embed in organization 
  • Treatment of backlogs (i.e., identifying revenue missed in the past & taking action to recover where possible) 
  • Building controls to avoid & help catch any future issues in the new processes 

Requiring close collaboration between Finance, IT, Commercial & Operations teams. 

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Results
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Results
  • Multiple internal processes were set up, improved and/or automated to structurally stop the revenue leakage. 
  • Internal control dashboards & processes were built to help identify & avoid future leakage. 
  • Contract templates and Terms & Conditions were revised to avoid potential misinterpretations and improve automation potential.