cforia MC 2 Managing Credit Collections Deductions

cforia: MC 2: Managing Credit, Collections & Deductions -Moving money from the balance sheet to the income statement

cforia: History • Founded in February of 2001 to create the best of breed Credit, Collections and Deductions application for manufacturers, distributors, service & construction • Partners – – – SAP/ASUG Infor Complementary Partner Oracle / People. Soft JDE Quest Partner Cash. Book • Over 130 customers worldwide • Our application will manage over 60 Billion dollars in FY 2006 • Every customer is live and on the current release – Never had a failed project

cforia:

cforia: AR Database’s are Complex Collectables – Clean receivables Disputes – Dirty receivables Deductions- Dirty receivables • Clean Receivables – Collectables : transactions that are not disputed & whose receipt can be forecast • Dirty Receivables – Disputes : transactions that disputed and not paid – Deductions : transactions that are customer debits

cforia: Portfolio Challenges Headquarters Parent Customer Invoice Invoice

cforia: What problem are we solving? • AR analysts manage up to 5 five different processes – – – Order hold/release Collections Credit Deductions and disputes Sales rep support • Each process requires different workflows • ERP Systems are designed to process transactions and post to the GL • What tools are being used today to manage this strategic asset?

cforia: Current AR Tools Outlook/Notes • Ticklers • Collaboration • Contacts AR system • Ticklers (? ) • Notes • Contacts(? ) • AR Inquiries • Invoice reprint • Order hold/release • Credit limit changes Word • Letters • Internal collaboration Paper • Aging reports • Statements • Notes (? ) • Ticklers (? ) • Deduction folders Excel • Account analysis • Internal collaboration • Deductions(? ) Internet • POD’s • Banking information • Customer web sites Fax Machines • Collaboration Imaging Systems • Documentation Network Drives • Store customer information Credit • e. Ram, etc. Others

cforia: Structural Inefficiencies

cforia: Streamline Workflows

cforia: Key Features Delivered • Segregate aging to improve decision making • Streamline order hold/release processing – Optimize in-bound credit checking logic • Prioritize collections/deductions activities – Rules based collections to maximize cash flow • Automated customer touches via letter engine – Improve collector efficiency • Track, manage and control deductions – Integrate AR process with key stakeholders • Deliver new reports – New controls drive performance – Customer, collector and company – Cash flow forecasting

cforia: Success Stories • Napa Auto Parts – 20% DSO reduction yielding 7 figure annual benefit • Ashley Furniture – Sales grew from 860 million to $3. 5 billion while AR headcount was reduced by 20% • Club Car – Collection efficiency increased 32% yielding a first year $500 K benefit • Ferrero Inc. (Tic Tacs, Nutella, Rocher) – In first six months, while sales increased 25%, DDO decreased by 20%, headcount by 25% • Typical customer sees a minimum DSO reduction of 10% in first year – ROI’s measured in months

cforia: Success Drivers • Technical – Designed for Mapics IFM and AM Financials • • Real-time integration Extension file-based Multi-currency and language Localization – No risk project • No ERP system changes required • All Cforia functionality is incremental – Few IT resources required to implement and maintain • Loads in a few hours • Trained and running in under 3 days

cforia: Quote to Cash Business Process Sales Cycle Enter Ship/ Invoice Order MC 2 Credit • • MC 2 Collections Order Entry • • Cash Based CRM Sales Rep Management Sales Cycle Collaboration Order Hold and Credit Limit Mgmt. Credit Risk Analysis Credit Scoring Sales Rep Portal Customer Self Service Total Receive Payment Charge-Backs MC 2 Deductions Acct • • Rules Engine Invoice auto-fax Tickler system E-mail Letter Auto-Fax Dispute Mgmt Accountability • • Control Rules Engine Deduction tracking and aging Credit Memo auto-fax Tickler system E-mail Letter Auto-Fax Dispute Management Dispute Accountability Collaboration Portal

cforia: Enterprise Collaboration Portals Customers On-Line MS 2: Customer Portal • All AR inquiries • Reprints • Exports • Payments (3 rd party) On-Line MR 2: Sales Rep Portal • All AR inquiries • Reprints • Collaboration On-Line MD 2 -Web: Portal • Deduction inquiries • Attachments/notes • Collaboration On-Line MC 2 -PM: Portal • Job management • Collaboration • Automation Sales Collaborator Project Mgrs. MC 2/MD 2 Management Tool • Work queues • Workflow • Notes • Disputes • Credit limits • Deductions • AR Inquires AR Specialist • Letters • Exports • Collaboration

cforia: Reporting & Dashboard

cforia: Cforia’s AR Breakdown for clean and dirty receivables

cforia: Breakdown aging in many ways

cforia: Drill Down Ability to analyze AR for each customer

cforia: Cash flow forecast exportable into Excel by sales rep, collector, customer, parent or company

cforia: The Cforia Difference • Only vendor to provide real-time data access • We pioneered the order release functionality in the industry • Single interface for all credit, collections and deductions activities • Extremely easy to use • Very quick implementations • All development and support is on-shore • Customer intimacy and customizations

cforia: What our Customers are Saying “MC 2 is the first tool I have ever seen that uses only our undisputed open A/R, and takes into consideration our customer's historical payment patterns to derive an overall cash receipt forecast. The tool has improved my ability 10 -fold to not only forecast our cash receipts activity, but also when to quickly identify variances from actual cash receipts. MC 2 represents a quantum leap forward for our company from both a collection and a cash management perspective. ” – Steve Font, Corporate Director of Treasury, Turner Industries

cforia: Pamela Bauer Cforia Software 847 -441 -5404 pbauer@cforia. com