Substrate manufacturer Klasmann-Deilmann extends credit management
Growth is the core business of substrate manufacturer Klasmann-Deilmann. The company, which specializes in production horticulture, is active worldwide and relies on Open Credit 4.0 to coordinate the credit management of its sales companies. New functions such as country scoring, an administrable start screen and integrated reporting now complete the system.
Peat, wood fibers, green compost, substrates – anyone who thinks of these terms only as the hobby gardener tender cuttings in his own garden is undoubtedly thinking too small in the context of Klasmann-Deilmann. Sure, the traditional company from Geeste in Lower Saxony, founded in 1913, also sells potting soil to the end consumer; however, its focus is on customers from the B2B sector, specifically: in production horticulture.
In view of the company’s growth, Klasmann-Deilmann relies on state-of-the-art and at the same time sustainable technologies. “We are an extremely progressive company and put a great deal of emphasis on the digitalization of all processes,” explains Daniel Klinke, Credit Manager. Optimal networking of the company’s branches spread across the globe is absolutely essential. Klasmann-Deilmann supplies its products to over 90 countries. Both to the company’s own subsidiaries and to sales partners.
This also entails the risk of payment defaults. Especially in less stable countries. There, the risk of country-specific risks must be balanced on a daily basis with the payment behavior of the respective sales partner and its outstanding receivables. Since the introduction of Collenda’s Open Credit 4.0 software suite, Klinke and his team have a clear overview of customer receivables, credit limits and risks at all times. “For us, the introduction of the new software has been a quantum leap,” explains Daniel Klinke.
Now Klasmann-Deilmann and Collenda have gone one step further to make credit management even more watertight and have equipped the system with three additional features:
- Country Scoring: from now on, various rating criteria can be imported on a country basis from external sources such as credit insurers. This makes it possible to determine the risks of default in the various countries. Such values then have an influence on a scorecard. This results in risk assessments that are accurate to the day and thus in more reliable decisions about upcoming deliveries.
- Administrable start screen: Maximum flexibility is also provided by a start screen that can now be administered. Task-related details can be displayed individually for each customer profile on one screen. This means that the details that are crucial for the user can be displayed as soon as the user enters the customer file.
- Integrated reporting: Reporting is now integrated into Open Credit CM and has been streamlined. Users can more effectively utilize insurance and limit reports as well as aging lists from their companies.
From Collenda’s side, Regine Hilgers was in charge of the project: “We tested for a total of one week and then changed over,” explains the product owner.
The joint project started at the end of 2016 – and has since been rolled out across all subsidiaries with new requirements. Numerous milestones have been reached. At the time, Klasmann-Deilmann opted for Collenda’s Credit Management Software because of its extensive functionalities. Important factors in this decision were the integrated workflow for credit limit approval and the automatic transfer of these limits to SAP Business One. Credit limits, information on blind or blanket coverage and insurance periods can be viewed across departments at the click of a mouse.
“One of the challenges was to reconcile the different currencies and national guidelines,” explains Daniel Klinke. The company serves around 15,000 customers. It’s important to maintain an overview. Currently, about 15 employees from the Credit Management department at Klasmann-Deilmann use the software. “The system is designed to comprehensively display all receivables,” explains Collenda expert Regine Hilgers.
At any rate, the foundation has been laid for Klasmann-Deilmann to live up to its claim in the future. It reads: “we make it grow”.