Case Study : Status IT, London

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Status IT is a leading computer hardware reseller based in London with a turnover of £3m. The company sells primarily printers and consumables and issues approximately 50 invoices each day. See http://www.statusplc.co.uk

As a medium-sized enterprise Status IT was able to hire only one employee for Credit Control. In addition, this staff member had other responsibilities, which meant that credit control tasks sometimes took second priority. Although the Sales Ledger was in an acceptable state the company recognised that there was room for improvement. In addition the employment of just one credit control manager left Status IT vulnerable during holiday and sickness periods.

Solution

Status IT's Managing Director discussed support options with TAK-Outsourcing and it was agreed that a partial outsourcing service would give the company the control and flexibility desired.

TAK-Outsourcing work alongside Status-IT's internal Credit Control Manager, taking responsibility for a portion of the sales ledger to ease the burden. TAK-Outsourcing utilise remote access to Status' Sage sales ledger to view and update customer records giving up-to-date information to both parties. The added support means that a more pro-active service is achieved and the effect of this has been to reduce debtor days and bad debt, whilst improving customer service and query resolution.

Benefits

Status IT was impressed by the smooth transition to the TAK-Outsourcing service, the flexible approach, and the professional manner of the staff. The following key benefits were realised by the company :

• Reduction in DSO and increased cashflow.
• Reduction in the total cost of the Credit Control function.
• A more flexible service catering for peaks in sales.
• Solved the problem of holidays and sickness in Credit Control.
• Allowed Status IT to concentrate more on core business.