Interview with Ghislaine GUITTAT, Credit Manager Corporate at Schneider Electric

Challenges

• Complex Global Operations:  Schneider Electric is a multinational company operating in over 100 countries, managing 192 companies across diverse geographies, with dozens of ERP systems in place. This complexity made it difficult to harmonize data, standardize credit management processes, and maintain a clear overview of client risks worldwide. With such a wide geographic spread, each country and legal entity had its own credit processes, leading to inconsistent practices and a lack of collaboration across regions.
• Limited Efficiency and Visibility: Despite having a vast customer base, Schneider Electric faced inefficiencies in its credit management practices. There was limited visibility into global client risks, and credit teams struggled with managing disputes, manually tracking overdue payments, and responding to customer issues in real-time. There was a need for a better way to address overdue accounts and disputes faster, as well as to automate routine tasks to free up the credit team for more value-added activities.
• Digital Transformation and Standardization Needs: The company was under pressure to digitalize its operations and integrate its systems to ensure that all teams worked on the same platform with the same data and processes. Given the varying levels of technology maturity in different regions, Schneider Electric needed a unified solution that could cater to all local needs while promoting a standard global approach. The transformation involved significant change management and ensuring the adoption of new systems across diverse cultures and legal entities.

Solutions

• Adoption of My DSO Manager: My DSO Manager was chosen as the platform to standardize and improve credit management across the organization. The platform's simplicity and ease of implementation were key benefits, allowing the credit team to adopt it quickly without requiring heavy IT support. One of the standout features was its ability to provide excellent visuals that helped track collections performance, empowering the team with the insights needed to manage accounts more effectively. It allowed automated collection reminders for every customer, which directly impacted overdue amounts and Days Sales Outstanding (DSO), improving the company’s ability to manage client risks.
• Harnessing the Power of Artificial Intelligence (AI): Data harmonization and centralization were central to the solution. AI played a major role in transforming how Schneider Electric assessed credit risk, provided customized credit limits, and facilitated negotiations with insurers. The use of AI for credit limit validation and financial risk assessment enhanced accuracy and decision-making.  It also enabled real-time analysis of disputes and client behavior, resulting in faster resolution times and better outcomes. The integration with external sources, such as credit insurers and reference agencies, further enhanced risk management by providing additional insights and more effective credit assessment tools.
• Empowering Credit Managers and Standardizing Processes:  Credit managers became the "architects" of the solution, ensuring the strategy was driven by real operational needs and a clear understanding of the challenges on the ground. The user-centric approach enabled rapid implementation and provided credit managers with the tools to oversee large and small receivables effectively. Standardizing processes across the company facilitated collaboration between credit teams, and My DSO Manager provided universal access to stakeholders across different regions, improving overall communication and response times.

Results

• Improved Performance and Efficiency: My DSO Manager drastically improved performance across the credit management function. Every customer, regardless of size, now receives collection reminders, reducing overdue amounts and DSO. The platform enabled earlier identification of disputes and provided powerful visuals, which allowed for quicker dispute resolutions and an overall faster cash collection process. The real-time data and insights provided by the system allowed for quicker decision-making and immediate action, significantly improving overall credit management efficiency.
• Global Standardization and Best Practices: The implementation of My DSO Manager resulted in a unified, standardized credit management process across 72 countries. By consolidating data and processes, Schneider Electric was able to share best practices globally and drive consistency in how the company handled credit and receivables. The integration of 150+ organizations by the summer of 2018, spanning multiple continents, showcased the effectiveness of the solution in harmonizing practices across different markets.
• Improved Cash Flow and Risk Management: The project has had a direct, positive impact on cash flow, with significant improvements in collections and overdue reduction. Schneider Electric now has better tools for managing credit risk, ensuring that their financial exposure to clients is continuously monitored and assessed. This has allowed for more informed decision-making and more favorable negotiations with insurers, all while improving credit limit validation.
• Workforce Transformation and Empowerment: The introduction of My DSO Manager helped transform the workforce by automating low-value tasks, allowing credit managers and teams to focus on higher-value activities such as strategy, customer negotiations, and issue resolution. The platform provided real-time visibility of client issues and allowed team members to work collaboratively across regions to resolve problems quickly, which is crucial for maintaining smooth operations in a global company. The overall transformation resulted in a more agile, flexible, and empowered workforce, capable of adapting to changing business conditions and challenges in real time.