{"id":3493,"date":"2018-04-20T16:35:04","date_gmt":"2018-04-20T16:35:04","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3493"},"modified":"2022-09-06T09:54:40","modified_gmt":"2022-09-06T09:54:40","slug":"organizational-structure-for-the-collections-process","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2018\/04\/organizational-structure-for-the-collections-process\/","title":{"rendered":"Organizational Structure for the Collections Process"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

When we looked at the organizational alignment of the Credit Function in one of last month\u2019s articles, we noted that Credit was part of an Order-to-Cash process in Shared Services for 39% of companies, with 22% having credit reporting into Treasury.\u00a0 The majority of companies, at 75%, were either very satisfied or satisfied with their reporting relationship.\u00a0 While often stated as together as \u201cCredit and Collections\u201d, the nuances of collecting past due accounts<\/a> may not be identical to the process for determining credit worthiness and extending credit, which may have a significant impact on where responsibility for the Collections process may reside at a company.\u00a0<\/span><\/p>\n

iPollingTM<\/sup> Results Review<\/strong><\/span><\/p>\n

Peeriosity\u2019s iPollingTM<\/sup> was recently used to gain insight regarding the organizational structure of the Collections process at our member companies.\u00a0 The poll results indicate that 37% of the companies have Collections fully consolidated in Shared Services, with 5% responding that they are fully centralized, and an additional 5% indicating that the process is outsourced.\u00a0 A significant percentage of the companies (34%) are utilizing a hybrid design in which more than one of the structures is being utilized. \u00a0Interestingly, just 5% of companies have the process fully decentralized.<\/span><\/p>\n

\"iPolling:<\/p>\n

When considering the organizational approach for Collections that companies are expecting to take over the next 3 to 5 years, 35% see additional consolidation into Shared Services<\/a>, with an additional 15% seeing more centralization within a headquarters\/business unit type structure.\u00a0 None of the companies anticipate a move towards decentralization.\u00a0 With 30% not expecting any changes and 15% shifting towards more outsourcing, the overall shift is clearly towards consolidation in Shared Services or greater centralization, and away from a decentralized, and likely inconsistent or unstructured, Collections process.<\/span><\/p>\n

\"iPolling:<\/p>\n

Here are some of the poll comments from Peeriosity members:<\/span><\/p>\n