Credit and Collection manager

Company Description

Vienovo is a fast-growing Feeds Manufacturer company based in Cebu, Philippines, that delivers high-value animal feeds nationwide. We specialize in complete feeds to meet the diverse needs of our customers.

Role Description

In the Philippines, the role of a Credit and Collection Manager becomes even more critical, especially due to the country's geographic complexity with its multiple islands, logistical challenges, and the importance of Delivery Receipts (DRs) for validating sales and initiating collection processes. Here are the main duties and roles specific to this context:

1. Credit Assessment and Approval

Evaluate Client Creditworthiness: Review customer credit applications, including financial records, business reputation, and payment history.

Determine Credit Limits and Terms: Establish appropriate credit terms and limits based on client evaluations, especially considering regional risks in different areas/islands.

Policy Formulation and Enforcement: Implement and update credit policies tailored to local market conditions, addressing specific regional risks such as natural disasters or economic variances.

2. Delivery Receipts (DR) Collection Management

Ensure Accurate Documentation: Monitor the issuance and return of Delivery Receipts (DRs) to confirm that they are properly signed and acknowledged by clients. This serves as proof of delivery and acceptance of goods/services, a critical step before initiating collections.

Track and Reconcile DRs: Implement systems for tracking DRs and reconciling them with invoices, ensuring discrepancies are resolved quickly to prevent delays in the collection process.

Coordinate with Sales and Logistics: Collaborate closely with the sales and delivery teams to ensure that DRs are promptly collected from customers across different regions and islands.

3. Accounts Receivable Monitoring and Analysis

Regular Monitoring: Review aging reports regularly to monitor outstanding receivables across various regions and islands.

Identify High-Risk Accounts: Pay special attention to accounts in remote or hard-to-reach areas, where collection may be more challenging.

Regional Analysis: Conduct analysis based on geographic segmentation to identify potential collection issues in specific areas (e.g., high-risk areas due to frequent weather disruptions).

4. Collection Strategy Development

Create Area-Specific Collection Plans: Develop tailored collection strategies for different regions, considering factors like logistical challenges, local business practices, and customer payment behavior.

Engage Regional Collectors: Work with local collectors or collection agencies to cover distant areas effectively, particularly in hard-to-reach islands.

Implement Field Collection Visits: Organize regular field visits to clients for payment follow-ups, especially for larger receivables or in areas with poor communication infrastructure.

5. Customer Relationship Management

Maintain Good Customer Relationships: Ensure clear communication with clients about credit terms, due dates, and any issues related to Delivery Receipts or payments.

Resolve Disputes Promptly: Address customer disputes or issues regarding deliveries, invoicing, or payment terms to prevent delays in collection.

Negotiate Payment Plans: Offer flexible payment arrangements if customers face difficulties, particularly those in regions with seasonal business variations (e.g., tourism-dependent areas).

6. Coordination with Internal Departments

Sales and Logistics Collaboration: Work closely with the sales and logistics teams to ensure timely deliveries and accurate documentation, especially for clients in multiple areas/islands.

Work with Finance: Provide the finance department with updates on accounts receivable and cash flow forecasts based on regional collection activities.

Supply Chain Communication: Coordinate with the supply chain team to manage deliveries effectively and ensure proper handling of DRs, especially for large or urgent orders.

7. Risk Management

Evaluate Regional Risks: Assess regional risks, such as natural disasters (typhoons, floods), economic downturns, or political instability, that could affect the customer's ability to pay or the company's ability to collect.

Implement Mitigation Strategies: Adjust credit terms, require upfront payments, or secure additional guarantees for high-risk accounts or areas.

Insurance and Guarantees: Consider credit insurance or bank guarantees, particularly for larger accounts in remote or high-risk locations.

8. Reporting and Performance Analysis

Generate Comprehensive Reports: Prepare detailed reports on receivables, collections, and aging, broken down by region or island to identify trends and areas needing attention.

Key Performance Indicators (KPIs): Track KPIs such as Days Sales Outstanding (DSO), collection effectiveness, and bad debt ratios, with regional analysis for better insights.

Provide Feedback to Management: Regularly update management on the status of collections, highlighting challenges specific to certain areas or accounts.

9. Legal Actions and Compliance

Adhere to Local Laws: Ensure that all collection practices comply with Philippine regulations and local ordinances, particularly in different provinces or cities.

Initiate Legal Proceedings: Work with legal advisors to pursue collections through legal means if necessary, especially for high-value accounts with substantial overdue amounts.

Bad Debt Management: Make recommendations for writing off uncollectible accounts and ensure proper documentation and reporting of these write-offs.

10. Continuous Process Improvement

Optimize Collection Processes: Continuously evaluate and improve credit and collection processes to enhance efficiency, especially considering the challenges of multiple islands and regions.

Implement Technology Solutions: Use digital tools like accounting software, CRM systems, or mobile apps for field collectors to streamline documentation, tracking, and reporting.

Training and Development: Train the credit and collection team on best practices, customer communication, and new tools or software, focusing on handling regional-specific challenges.

Key Objectives of the Credit and Collection Manager in the Philippines:

Maximize Cash Flow: Ensure timely collections across all regions to support the company's cash flow needs.

Minimize Bad Debt: Reduce exposure to uncollectible accounts by assessing risk accurately and acting proactively.

Improve Documentation Efficiency: Streamline the process of obtaining, managing, and reconciling Delivery Receipts to avoid collection delays.

Adapt to Regional Challenges: Implement flexible, region-specific strategies to overcome the geographic and logistical challenges posed by the country's diverse areas.

The Credit and Collection Manager in the Philippines must effectively navigate the unique challenges posed by the country's archipelagic geography, ensuring efficient and timely collection processes while maintaining strong customer relationships across various islands.