GARDEN GROVE, CA--(Marketwire - May 13, 2009) - Vengroff, Williams & Associates, Inc., the
leading provider of receivable management and business process outsourcing
solutions, today announced findings from a recent online survey of
financial executives at Fortune 1000 companies in the United States.
The VWA survey revealed that a large number of the companies are
significantly concerned about both cash flow and tight liquidity and are
keeping a strident watch on credit terms and corporate credit risk. The
global economic environment and restricted access to liquidity have
highlighted the importance of an efficient cash management structure. As
working capital is the lifeblood of firms, 90% of the survey respondents
indicated that they are constantly examining the ways in which they can get
cash flow under control. While traditional corporate performance levels
have focused on factors such as the efficiency of manufacturing,
operations, and the effectiveness of sales and marketing, the primary issue
is working capital management, that which dictates business survival and
growth.
Additionally, the survey revealed that historical-based measurements, such
as past due percentages, DSO and aging quality, used by 89% of the
responding companies, are the primary measures of success for their firms.
The majority of those polled stated that they are looking for proactive
ways to head off receivables disputes before they become an issue.
"Affiliating oneself with a trusted partner that has the range of cash
management solutions required to optimally manage collections, payment and
liquidity is vital at this time in our economy," stated Robert Sherman,
president of Vengroff, Williams and Associates. "Using historical
indicators alone, such as DSO and percentage past due, to measure success
is akin to driving while looking in the rear-view mirror. When cash is
otherwise locked in due to disputes it is time for companies to tighten
credit practices and optimize cash inflow to ensure that DSO, DDO, and
Collection Effectiveness is not negatively affected -- these key metrics
used to rate the financial health of firms."
Furthermore, 90% of the polled corporations agree that effective dispute
and deduction management can improve customer service and unlocks time for
justifiable activities like sales, order entry and cash collection.
Overall, with effective working capital processes in place, efficiency
increases as a result of reduced operating costs. In fact, 72% of
respondents say that their company reviews the balance of overdue
receivables on a weekly basis.
Additional survey findings from VWA revealed that in spite of the fact that
68% of the respondents have themselves requested credit from a vendor or
credit resource in the past 90 days, this same percentage has tightened up
their respective corporate credit policy in response to the current credit
crunch. Overwhelmingly, responding companies noted that is it riskier to
extend credit to their customers, as compared to the same time last year.
The VWA survey conducted in April 2009, polled financial, collections and
receivables executives at mid-to large-sized global companies in varying
industries and found that:
-- 93% of companies tie individual success to the overall company
financial goals
-- 76% indicate that the single biggest challenge facing their company
today is handling the work volume with limited resources
-- 87% say that their company will not be facing financial issues due to
lack of working capital within the next 3-6 months
According to an Aberdeen study in 2008, titled, "Working Capital
Optimization: Finance and Supply Chain Strategies for Today's Business
Environment," 71% of companies polled cited Working Capital Optimization
(WCO) as a high priority. The top pressure driving companies to focus on
WCO is the pressure by financial stakeholders to improve working capital
metrics. Aberdeen Group's study of 179 companies shows that corporations
are responding to the tighter financial conditions with an increased focus
on short-term internal strategies of extending Days Payable Outstanding
(DPOs) and reducing Days Sales Outstanding (DSOs).
About Vengroff, Williams & Associates, Inc.
Founded in 1963, and with $23 billion under its management, Vengroff,
Williams & Associates is a leading provider of receivables management
business process outsourcing (BPO) solutions for Fortune 1000 companies
such as Ford Motor Company, Federal Express, Kodak, Microsoft, Yamaha and
others. Applying state-of-the-art proprietary information systems, best
practice work flow and people to realize cost reductions, operating
efficiencies, and improved process design, Vengroff, Williams and
Associates' approach enables clients to easily insource or outsource all or
part of the quote-to-cash function. Solutions are customized to each
client's requirements or expanded to incorporate specialized tools and SAS
70 compliant processes and procedures. Services include full order to cash
processing, third party collections, EIPP systems, deduction management,
dispute management, auto cash solutions, front-end risk mitigation, and tax
resolution. Named a Top 21 enterprise-level FAO service provider by FAO
Today Magazine and to the Global Services Top 10 in the FAO Category, to
learn more about the award-winning Vengroff, Williams and Associates,
please visit
www.vwainc.com or telephone (866) 393-4892.
Contact Information: Contact:
Amy Rosenthal
Trier and Company for VWA
415.717.2485
Email contact: amy@triercompany.com