Estimated reading time: 4 minutes
The Challenge
Frankort & Koning is a Dutch wholesaler of fruit and vegetables. With an annual turnover of € 250 million and serving retailers in Germany, Scandinavia and Italy, among others, it is a European company of some stature. “Europe is our market, the world is our source”, as Paul van der Kruijs, Managing Director of Frankort & Koning puts it poetically.
As a wholesaler, debtor follow-up at Frankort & Koning involves large outstanding debts. With 550 active customers (including retailers, wholesalers and market vendors) who buy large quantities of fruit and vegetables with great frequency, outstanding amounts of € 30 million and more are no exception. Frankort & Koning was therefore looking for a system that supports them in the follow-up of these amounts owing and helps to eliminate customers’ number one excuse: “We have not received the invoice”
The greatest challenge for Frankort & Koning’s credit management function is the great diversity of clients: retailers, wholesalers, market vendors… Each of them requires its own approach. Wholesalers and market vendors require very intensive follow-up, whereas retailers pay promptly, but often deduct amounts without prior notice or based on their own records. Moreover, the invoicing process is often different for retailers: with them, the invoice is usually only sent once the goods have been received.
iController’s approach
As a first step, the Frankort & Koning database was connected to iController software so that all their data was secured. Paul van der Kruijs: “It was a challenge to get the database properly connected, but thanks to the direct connection between iController and our IT department, it went quite smoothly.”
Different procedures were subsequently created so that the approach could be diversified according to the different types of customers. For example, retailers were offered a more lenient procedure, and some of them were even excluded from being sent reminders, whereas wholesalers and market vendors received more intensive follow-ups.
The high demand to be sent duplicate invoices was also taken in hand. Paul van der Kruijs: “iController removes our customers’ biggest excuse. The software allows us to provide customers with an overview of the outstanding amounts, after which they can retrieve the corresponding invoices themselves.”
Successes
Since Frankort & Koning exchanged its excel file for iController software, credit management has become much more efficient than previously. Paul van der Kruijs: “If everything goes smoothly, you get used to it very quickly. For example, by sending an account statement once a week, there are far fewer requests for invoices that the customer has not received. That makes it easier to talk to the customer.” The company is also seeing its credit losses on wholesalers and market vendors steadily decline, which is helping the business.
“iController has clearly thought hard about the problems credit managers face and how to solve them. This gives their solution functions that are not present in other software.”
Paul van der Kruijs, Managing Director Frankort & Koning.
The subscription model was also a decisive factor for Frankort & Koning: the fixed monthly payment – independent of turnover – keeps the costs down. “iController has clearly thought hard about the problems credit managers face and how to solve them. As a result, the iController solution offers functions that are not available in other software. For us, this is mainly the digitalisation of the process. The debtor’s file is automated and even their replies are automatically entered into the file. I have not come across that anywhere yet,” says Paul van der Kruijs.
Frankort & Koning has many plans for the future. Together with iController, the company is looking into the possibilities of making a link with GoFast, a digital working environment. Thus Frankort & Koning hope to minimise the risk of input errors further. The company also foresees future expansion through acquisition. Paul van der Kruijs: “As we expand the company, we want to use the iController software in the new business areas too. For example, the software can help us make analyses across portfolios.”
