Oracle Credit Management: An easy solution for evaluating customer credit worthiness

Gaurav Tomar TIBCO Software Inc. gtomar@tibco.com Usha Raghavan Ubex Corporation usha.raghavan@ubex.com

Jan 17, 2007

Agenda Introduction Process Overview Issues Solution Overview Challenges Costs/Benefits of Implementation Conclusions Q&A

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TIBCO Software Inc.

TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business. With over 2,500 customers, TIBCO has given leading organizations around the world better awareness and agility what TIBCO calls The Power of Now. TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains. Visit www.tibco.com for more information

2007 UBEX Corporation and TIBCO Software Inc. .

Process Overview

Prospects/customers

Sales Team

Credit Management team

Decision

Recommendation Customers

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Terminology Party A party is a person, organization, or collection of parties that can enter into relationships with other parties. Customer/Account The accounts are associated to the party and all transactions (orders, invoices etc.) are linked to account. Sites The locations (seen as addresses on customer form) are sites. E.g. Bill To, Ship To etc.

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Current Scenario

Parent Party 3COM(Parent) Parent Customer/ Account

Reporting Relationship

Party (3COM EU) Customer/ Account Bill to Site

Party (3COM LA) Customer/ Account Bill to Site

Credit Limit at Customer level in different currencies

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Issues
Business Issue

No global visibility of credit worthiness at customer parent level Credit approval is manual SOX documentation Occasional occurrence of shipping goods to bad debt customers Delay in the shipment due to delay in the credit validation of the customer Possibility of storing redundant customer Credit data Possibility of data entry error Disconnected and manual processes

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Future Scenario
Parent Party 3COM(Parent) Parent Customer/ Account
Party Relationship Credit Limit at parent party level in USD will be shared by group of customers in hierarchy

Bill to Site (Optional)

Party (3COM EU) Customer/ Account Bill to Site

Party (3COM LA) Customer/ Account Bill to Site

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Solution Options
Option
Implement 3rd Party Software

Advantages
Short implementation time

Disadvantages
Disparate systems Licensing cost Retraining of users

Enhance existing system Implement Oracle Credit Management

Proprietary processes supported

Long development time

Short implementation time Product flexibility helps support proprietary processes

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Retraining of users New module

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Oracle Credit Management

Oracle Credit Management, a member of receivables and revenue management helps to improve the timeliness of the credit decision making process based on the credit data collected for customers and prospects. It helps to achieve: Established credit policies and standards for customers and prospects across the enterprise Periodic credit review and assessments Flexible credit scoring models for customers and prospects Monitor existing customers payment practices throughout the business relationship Seamless integration with Dun & Bradstreet

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Solution Overview

Prospects/customers

Sales Team

Credit Management team

Decision

Recommendation

Customers

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Processes Supported in OCM

Credit limit at the parent party level Approval process within Oracle Automated on-Line Credit Application Checklist to identify required and optional data points to be collected during a credit review User-defined credit scoring models Case folder, central repository for credit review information Recommendations for each credit applications Performance measurements of customers Single currency credit limit (USD) in a multi-currency setup Periodic credit reviews
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Implementation Features
Credit limit for group of customers at the parent party level Parent Party level credit limit in single currency Classify customers for credit - High risk, Medium risk, Low risk
Multiple checklist for combination of Credit Classifications and review type Automate recommendations for low risk customers

Intelligent Review and Approval Routing

Credit applications for review and approval by region (US, APAC, EMEA) Enable credit application approval from multiple credit managers

Custom programs
Facilitate initial credit limit determination Build customer relationship programmatically Automation of initial credit application
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Setup Credit Scores

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Setup Checklists

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Setup Credit Analyst Assignments

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Credit Application

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Analysis Case Folder

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Analysis - Case Folder Review

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Performance Review

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Challenges Relatively New Module Customizations specific to TIBCO Credit worthiness management modeling Defining new business process Coordination and Training globally with different business units

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Benefits of Implementation Completely integrated credit review and approval process Real time information available Minimized data entry error More in sync data History of credit increments Sox related requirement fulfilled Better customer relationship

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Costs of Implementation Infrastructure

No additional hardware and instance

Licensing
No additional licensing required for users

Implementation
Implementation time is short

Training
Minimal

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Conclusions Better business process Improved productivity Assessing credit ahead of time helps to make better business decisions

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Ubex Corporation
Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications

Ubex is an Oracle Certified Partner

Visit Booth # 14 today or www.ubex.com for more information

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