OX Logistics Case Study – What Is Our Billing Backlog Anyway?

OX Logistics Case Study – What Is Our Billing Backlog Anyway?

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OX Logistics Case Study – What Is Our Billing Backlog Anyway?

by Dawn Kreager

Global Logistics Operations Manager, OX Logistics

Problem Statement

Companies in the moving and storage industry collectively bill $12.6 billion annually with a preponderance of those billings coming during the peak season of May through September. Having 60% or more of annual revenue generated in a five consecutive month period inevitably leads to managing a significant backlog in billing clients. This poses several challenges for business leaders. One key challenge is understanding whether the leadership team has visibility on the billing backlog to be able to answer these important questions.

 

  1. How large is the billing backlog in terms of dollars and number of moves?
  2. How old are the oldest moves in the backlog?
  3. Is there leakage in the billing process (are some moves not being billed at all)?
  4. Is there any progress being made on the billing backlog versus the number of new files coming in daily?

 

Executed Solution

Vantage Agora worked with a national moving and storage company to create a daily dashboard that measured several key factors of their business, including understanding the true metrics of the billing backlog during their peak season and beyond. Our client could measure how many invoices were being issued each day, but did not have visibility on the number of new moves coming in to determine whether the billing backlog was increasing, decreasing, or remaining flat day-over-day.

To give our client a true look at what was happening in their shipment accounting department, Vantage Agora created a dashboard to measure their daily invoicing with the number of new files coming in. What the client quickly realized was the billing cycle was experiencing invoicing peaks each month.

The monthly peaks were giving the impression that significant progress was being made on the daily billing backlog. What these monthly peaks were disguising were the bursts of invoicing which was being driven by monthly and quarterly storage invoices that never hit the invoicing backlog. The storage invoicing was issued in real time and the daily incoming files kept increasing the billing backlog week after week.

 

 

Impact of Vantage Agora Solution

After tracking the cyclical nature of the monthly storage invoicing and measuring it against the new incoming files during peak season, it became evident the seasonal staffing model was insufficient to keep up with the timely issuance of invoices to HHG and Commercial customers. The impact of the daily dashboards Vantage Agora created were as follows:

 

 

  1. Off-shore seasonal workforce was added to increase invoicing process within a 24-hour day to ensure the invoicing backlog was adequately managed.
  2. Average daily invoicing throughput increased by 150%.
  3. Average timing of billing backlog was reduced by 13 days (40%) because the monthly billing cycles were better understood.
  4. No U.S.-based staff was displaced with the addition of the off-shore staffing model. On the contrary, several invoicing processors were promoted to train and manage the off-shore staff.

 

Conclusion

Vantage Agora delivers solutions that convert Big Data into Business Intelligence which becomes Actionable Data. Call Vantage Agora at 888.246.7211 to see how we can develop the solutions you need to prepare for your 2017 peak moving season.

 

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