Case Study : Illustration Ltd
"Since taking on responsibility for our credit control function TAK-Outsourcing have reduced our average debtor days by 40%, at the same time reducing our internal admin and retaining our healthy customer relationships."
Illustration Ltd have been representing artists since 1929 when they were based in Covent Garden and known as the Kathleen Boland Studio and later the Garden Studio. Since the very beginning they have represented the world's leading illustrators from Frank R Grey in the 1930s, who illustrated the Jane Turpin stories by Evadne Price, to the outstanding collection of illustrators, still image and moving image artists they represent today.
Illustration Ltd act as an agency for a large number of illustrators and deal with customers on a global level. Credit control was being carried out as a part time role by the company accountant. This meant that the role could not be given full attention especially during peak times such as month and year end. Illustration decided to investigate solutions to help reduce outstanding debt and speed up payment time. TAK-Outsourcing was chose due to their willingness to work as an extension of Illustration Ltd?s organisation.
TAK-Outsourcing worked closely with the Managing Director and Associate Director of Illustration Ltd to establish a service to meet three key objectives : speed up invoice payment; retain or improve customer relationships where possible; reduce administration at Illustration Ltd.
The service was designed so that TAK could work as an extension to the Illustration Ltd team, co-ordinating closely with the company accountant. Reports and procedures were designed to give Illustration a complete view of the ledger and progress with outstanding debt, whilst limiting the level of administration required on the side of Illustration. Remote access was set-up to the Sage accounts system so that TAK had the ability to access the sales ledger and update notes against accounts. All calls were made in the name of Illustration Ltd and TAK set-up access to an Illustration Ltd email account. All of this meant that the outsourcing of credit control was transparent to Illustration customers. Over a short period the TAK team were able to build up a good working relationship with Illustration customer AP departments dealing with customers both in the UK and USA.
After 9 months of providing the credit control service TAK reduced Illustration Ltd`s outstanding debt by 45%, substantially reducing the average time taken by customers to pay invoices. Illustration Ltd has gained a professionally run accounts receivable service which allows them to focus more on core business.