Client Background
Our client is a leading service provider in the restaurant industry with over 20 years of experience. They support a network of more than 27,000 restaurants across the United States and employ a workforce of over 1,000 employees.
Client Challenges
- The AR department faced significant staffing challenges, leading to inefficiencies and inconsistencies in collections.
- AR management relied heavily on spreadsheets and an inadequate internal database tool, making it difficult to manage growing past-due accounts and increasing bad debt.
- Without competent technology or systematic account management processes, the portfolio experienced rising delinquencies and impaired cash flow.
Our Solutions
- AR Management: The Outsource AR team managed their AR portfolio, streamlined collections, and resolved receivables issues efficiently.
- Integration of SMART Technology: Our team implemented its proprietary SMART system to manage receivables, prioritize follow-ups, and provide real-time insights into AR performance, significantly enhancing collection strategies.
Our Results
- Our team achieved a dramatic reduction in past-due balances across all four division portfolios, improving overall financial health.
- We successfully maintained control over collections and AR processes for more than 10 years, leveraging the Outsource AR technology and expertise.
- Outsourcing AR functions reduced internal staffing requirements, leading to a 50% reduction in AR overhead costs while enhancing systematic collection efforts.
- Improved cash flow allowed the client to increase sales by 37%, all while maintaining a high percentage of current receivables, ensuring sustainable growth and financial stability.
By implementing advanced AR solutions Outsource AR empowered the client to overcome operational challenges, reduce costs, and achieve long-term financial success in the highly competitive restaurant industry.