fbpx

How Ninja Van reduced DSO by 12 days using Peakflo

Ritchie Wong CFO of Ninja Van

Ninja Van logo

Who is Ninja Van?
Technology- enabled logistics platform.

Peakflo customer since:
June 2020

Invoice per month:
5,000+

Key Takeaways:

  • Peakflo seamlessly integrated into our existing ERP and significantly improved our finance team productivity. It has become an integral part of our overall credit risk management process. 
  • My finance team collaborates with our merchant partners to manage follow-ups, dispute resolution, and payment tracking. The multitude of reports also helps monitor our AR transparently.
  • We have sent over 100,000 workflow-guided payment reminders to our customers and now collect our accounts receivable 10-15 days (~20%) faster on average.

Challenges:
Ninja Van is Southeast Asia’s leading logistics provider, with the highest service coverage in over 6 countries in the region. It has a presence across major ASEAN economies with over 30,000 customers and $100M+ in revenue.

It issues over 10,000 invoices/month to customers of different types and sizes (some small and some very large). But Inefficient collection and payment reminder processes meant that they could not  collect their outstanding invoices fast enough. This was not only reducing their collection efficiency but also hampering their customer experience.

Pain Point: Inefficient processes of following up with their customers and resolving disputes.

Apart from this, Management lacked an overview of their account receivable and credit risk management process. This  leads to difficulties in cash flow and working capital management on a group level. In a business that involves sending 5000+ invoices per month, following with manual reminders and reconciling various bank statements for credit control checks doesn’t make sense. 

Hence, the primary use case for Ninjavan once it onboarded to Peakflo was

  1. Collect unpaid invoices faster and improve productivity in the accounts receivable collection process
  2. Create a single source of truth of all communications with the customer, like a  Finance CRM, to be used for dispute resolution and credit controls
  3. Get an overview  of their account receivable and credit risk management process to improve cash flow and working capital management on a group level.

Solution:

Increased collection efficiency by sending automated and personalised workflow-guided payment reminders.

Peakflo allowed Ninja Van to send multiple reminders to customers once their invoices went due. They also sent invoices before the due date.

“We have sent over 100,000 workflow-guided payment reminders to our customers and now collect our accounts receivable 10-15 days (~20%) faster on average”

Created a customer timeline(Finance CRM) as an immutable audit trail of 2-way communication between client and customer. 

Collection efficiency ,customer status report, and ageing balance report provided  better guidance and transparency.

Objectives Met

  • Peakflo seamlessly integrated into our existing ERP and significantly improved our finance team productivity . It has become an integral part of our overall credit risk management process. 
  • My finance team collaborates with our merchant partners to manage follow-ups, dispute resolution, and payment tracking. The multitude of reports also helps monitor our AR transparently.
  • We have sent over 100,000 workflow-guided payment reminders to our customers and now collect our accounts receivable 10-15 days (~20%) faster on average.