CREDIT PROJECT CONSIDERATIONS (TRANS UNION OPTIONS (Pre-Check system (Able…
CREDIT PROJECT CONSIDERATIONS
Full Scoping session within the next 2 weeks
Identifying the Automation options and limitations
Report Criteria options to be built into the scoring system
What can our system accommodate and not
Application Form integrations
TRANS UNION OPTIONS
Custom and Generic options
Able to do a quick check via Web, app and potentially USSD
QVB - Generic scoring system
System can be up in 3 Weeks
AQM - Custom scoring system
Aim is to use the QVB system first later add custom modules
Do we consider a FLAT structure only - e.g. 25%
Do we consider a 2 Tier only - reward the Frequent buyers - e.g. 25% < 6 months and x% > 5 months in a 12-month rolling period?
Aim is to drive activity to reward frequent buyers.
If we reduce AD/GM Comp with x%, how much more will they earn due to less debt deductions?
Provisions/Bad Debt Impact
What is the probable provision impact if we implement the new Credit On Boarding
PEP Dist Points
What is the Min Order value to qualify for R 65 free PEP delivery;
What is the % to Sales impact of this option?
Costing of the Credit Solution
What is the current net of; Deductions recovered from field, Bad Debt Write off and Bad Debt Recovered
What is the "Saving" if we model 0.5 & 1% of AD & GM comp
What is our RISK if we take on the Credit
What is our extra cost if we employ debtors clerks
What is the recovery rate expected on the RISK we undertake vs. the cost of the new Debtors Clerks
A Project plan is pending the outcome of the Scoping session due in 2 weeks
To detail Risks, Constraints, Timelines and Resources required
WHAT IS OUR RISK APPETITE
If we model that we can save on Comp and Provisions; how much can we afford to write off based on expected % growth of Sales as a result of growth?
IDEAS OF ON-BOARDING
PEP delivery, No Credit Risk, Better Cash Flow, No Bad Debt/Provisions
Temporary State; GM/AD takes responsibility of Credit - reviewed Quarterly
Subject to acceptable Credit Score;
Seller responsible for his own "Business" and no longer blocked due to other's poor management
ON BOARDING PROCESS FLOW
Application Form - Can we digitize this?
We need to map the process as we see it to support the scoping session - time in the field required!
QUESTIONS FOR KEVIN
What were the mistakes that Avon made initially
What were the 3 biggest learning of Avon during this new Credit model
Did Avon also do Credit Checks?
Who carries the risk?
CURRENT WORK FORCE DATABASE
Run a whole database Validation cleanup - Trans Union
Give validated sellers the On-boarding option