Designing Credit Management Instead of Just Administering it

"We are delighted that with this software we have achieved a sustainable solution", said Yvonne Luger, Certified Credit Manager at the Koehler Group. "Because", she said, listing the big advantages: "thanks to the new system we can actively design our credit management instead of just administering contracts, policies and cover." The resulting measurable reduction and avoidance of payment defaults has a positive effect on profitability of sales.

In 2021 the family-run company decided to make a targeted investment to implement a more "orderly" credit management system to replace the outdated one. For a more effective analysis, internal payment records were to be considered in more detail and the different accounting cycles of the individual business units standardized. After intensive joint analysis with Ecclesia Credit, the company's long-standing partner for the areas of credit management and credit insurance, a strategy for a solution was conceived that was cheaper than modifying the old system: "ETCM (Ecclesia Trade Credit Manager) was what initially linked us to SCHUMANN", explained Luger, because ETCM is the result of a cooperation between Ecclesia Credit and SCHUMANN, based on the SCHUMANN solution CAM Industry & Trade, and is exclusively available to customers of Ecclesia Credit. "The processes became simpler for us and we were able to tailor the programming to match our workflows."

The Way to "Orderly" Credit Management

To achieve a satisfactory result, the existing and desired processes were gradually aligned. The SAP Integration Suite first had to be initiated, and the preliminary test revealed some weak points. The symbiosis between the credit specialists from Ecclesia Credit, the IT experts from SCHUMANN and Koehler's own IT experience were the key to successful integration. The Credit Manager Yvonne Luger commented: "We gave SCHUMANN the challenge and tested the software intensively. Everything came to a good conclusion because we trusted each other and achieved a lot. We have no regrets. "All the relevant processes from the creditworthiness checks and the credit insurer interfaces to dunning and debt collection were fully automated. The internal payment records were integrated, which results in an overall better customer evaluation and at the same time makes them viewable at every location. In addition, "soft facts" are also considered, such as experiences from visits to the customer's premises, for example: "is well organized" or "does not make a good impression". And as soon as a customer changes their payment behaviour this is automatically reported, triggering the necessary processes and providing the Sales Department with valuable insights into current cash flow.

Equally up-to-date are the detailed analyses such as risk limits presented graphically, which provide the management with well-founded, current data for risk assessment and financial decision-making. According to Luger, another positive benefit is the ticket system, which ensures fast and reliable support during day-to-day operations: "You don't get bogged down in mails but can present a problem easily, e.g. with the help of screenshots, and the solutions are comprehensible."  SCHUMANN's work, she says, is well-structured, solution-orientated and, she emphasizes: "It gives us a good feeling that we can work with known and very professional contact partners instead of anonymous ones." There is a trusting interaction between the family-run company Koehler and SCHUMANN.

The Potential for Further Development of the Solution

Because "long-term vision" is part of the Koehler company philosophy, not only that which has been achieved but also the future perspectives are important in working with SCHUMANN. "Real added value for us lies in the possibility of new add-ons that we can integrate in an uncomplicated way", says the Credit Manager. Worth considering, for example, would be an own balance sheet analysis in order to adjust the overall rating more finely and the AI-based evaluations from ALEVA, the AI platform from SCHUMANN. Based on the positive experience so far, the plan is to add more user accounts for the Sales Department. The sales team benefits enormously from this direct access. 

Ultimately, it is the total package that impresses Credit Manager Luger. In addition to the software, this includes the human element: "I enjoy working with so many bright minds at SCHUMANN, who enjoy developing and presenting innovative things. You can feel the spirit. These are not just boring nerds; all of them nurture their "baby" and they have a vision, and these ideas are actually realized!" She also values the personal contact at the SCHUMANN Conferences, where experiences are exchanged and ideas for the future take shape. "This family atmosphere makes credit management lively", she said.

ETCM Powered by SCHUMANN

The Ecclesia Trade Credit Manager (ETCM) is the result of a joint venture between Ecclesia Credit and SCHUMANN and is exclusively available to customers of Ecclesia Credit. The ETCM functions as a central platform for a company's credit management and enables access to, evaluation of, and monitoring of all relevant internal and external information in order to make a sound credit limit decision for each individual customer. All the data is bundled for the responsible Credit Manager in a clearly presented cockpit. This creates a reliable early-warning system with automatic notifications when events occur such as changes in creditworthiness or limit adjustments by the credit insurance company. Individual approval workflows for limits can also be configured within the system. Further information: www.etcm.credit