Collections were a problem. Customers took simply too long to pay. The CFO , “Against a commitment to pay after 30 days, they were taking as long as 100 days and we feel helpless to do anything about it.”

A sample of 100 invoices was drawn at random and the payment recovery lead time was matched with the quality of execution of the order. The quality of delivery seemed to have an impact on the promptness of receipt of payment.

How the data connects

Quite clearly, a correlation between the adherence to the delivery schedule and the lead time for release of payment (Graph) suggested the customer paid up promptly if the deliveries adhered to the time and quantity stipulated with 100 per cent accuracy.

Question for the Directors

After visiting the customers, the Sales Director informed the board that if the customers trusted the company, they paid on time. He shared that the ABCD of trust the customers wished to see must be reflected in the promptness and quality of deliveries made to them.

Authenticity: Do we place their personal win strategy above ours as our priority?

Belongingness: Are we empathetic to their hopes, fears and anxieties of our clients and stakeholders?

Confidentiality: Do we command their confidence enough for them to exploring their wildest options with us?

Dependability: Does our promise live up and exceed their expectations for them to stake their future with us? Why will our customers pay on time? According to him, the customers will be prompt in payment because of the reputation for living up to the promises made .

“Reputation is the key to opening their heart to welcome us to share their future exclusively with us. As long as we keep our promises of delivery, we will hold the power to receive payment on time!”

The question is this whether the company can continue to delivery promptly?

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