Posts in category: CASE STUDIES

Client Overview:

The client is a Noida-based IT company specializing in software development and IT consulting. The company had an expanding client base and was experiencing rapid growth. However, inefficiencies in their Accounts Payable (AP) and Accounts Receivable (AR) processes were starting to hinder their financial management and operational fluidity.

Challenges:

1. Delayed Payments to Vendors: The client was facing issues with processing vendor payments on time due to disorganized invoice management and approval processes.

2. Long Collection Cycles: Their Accounts Receivable collection cycle was extended, with payments from customers often delayed by 45-60 days, impacting cash flow.

3. Lack of Automation: The manual nature of their AP/AR processes was leading to frequent errors and inconsistencies in data management.

4. Vendor and Client Relationships: Due to payment delays, vendors were becoming dissatisfied, and clients were losing trust due to slow invoicing and unclear credit terms.

5. Poor Reporting: There was inadequate visibility on the status of both payments and collections, which hindered financial planning and cash flow forecasting.

CoDN Solutions’ Approach:

1. Process Audit and Gap Analysis: CoDN Solutions began by conducting a detailed audit of the client’s existing AP/AR processes, identifying bottlenecks, inefficiencies, and areas for improvement.

2. Standardization of Processes: We implemented standardized workflows for both AP and AR, ensuring that invoices were processed faster and approvals were tracked systematically.

3. Technology Integration: Introduced an integrated accounting software solution that automated the invoice generation, approval process, and payment reminders. This reduced manual intervention and errors significantly.

4. Credit Policy Revisions: CoDN advised the IT company on revising their credit policy, enforcing stricter payment terms with clients while offering flexible terms to vendors.

5. Enhanced Reporting: We implemented a dashboard reporting tool to give the management real-time insights into their cash flow, outstanding payments, and vendor dues.

Results:

• Reduced Payment Cycle: The AP cycle time decreased from 30 days to 15 days, ensuring vendors were paid on time.

• Faster Collections: AR collections improved significantly, reducing the average collection period from 60 days to 30 days, leading to better cash flow management.

• Error Reduction: Automation of invoice processing and payment reminders resulted in a 40% reduction in errors.

• Improved Client and Vendor Relationships: The streamlined processes led to higher client satisfaction and improved relationships with vendors, enhancing overall business efficiency.

Conclusion:

CoDN Solutions helped the Noida-based IT company streamline their AP and AR processes, resulting in:

• 30% improvement in cash flow due to quicker collections

• 50% reduction in late vendor payments

• Significant reduction in manual errors, leading to more accurate financial data and smoother operations.

This optimization enabled the client to refocus on their core business activities while having a clear and predictable cash flow structure in place.

Client Overview:

A Delhi-based entrepreneur approached CoDN Solutions with a vision to start an apparel business focused on trendy and affordable clothing. The client had no prior experience in business registration, GST compliance, or online retail but had a clear idea of the type of products they wanted to sell and the target market they wished to cater to.

Challenges:

1. Business Setup: The client required assistance in setting up the business legally, including company registration, GST filing, and compliance with industry regulations.

2. Market Positioning: Determining the appropriate price range and market category for the apparel business was crucial, as the market is highly competitive.

3. Digital Presence: The client needed a website and a solid online strategy for product display, order management, and payment integration.

4. Strategic Planning: A go-to-market strategy was required to launch the business effectively, leveraging digital marketing and e-commerce platforms.

5. Supply Chain: The client was unfamiliar with establishing relationships with manufacturers, vendors, and logistics partners.

CoDN Solutions’ Approach:

1. Business Registration & Compliance:

• Assisted the client with business registration, ensuring that the apparel business was set up as a legal entity.

• Helped with obtaining GST registration and fulfilling necessary compliance requirements to ensure that the business was tax-ready from day one.

• Managed all statutory compliances related to the retail and e-commerce industry, ensuring the client was operating within legal boundaries.

2. Market Research and Strategic Planning:

• Conducted detailed market research to define the target audience and appropriate price category, focusing on trendy, affordable apparel.

• Developed a pricing strategy based on competitor analysis and potential profit margins, positioning the brand as a mid-range, fashionable option for young adults.

• Assisted in creating a brand identity that resonated with the target audience, ensuring consistency across all digital platforms.

3. Website Development and Digital Strategy:

• Designed and developed a user-friendly e-commerce website, integrated with secure payment gateways and an intuitive interface for easy navigation.

• Implemented features like product categories, size guides, and customer reviews, which enhanced the user experience and built credibility.

• Launched the business with a strategic digital marketing campaign, which included social media ads, influencer partnerships, and SEO to drive traffic to the website.

4. Supply Chain & Vendor Management:

• Helped the client establish relationships with reliable apparel manufacturers and logistics partners, ensuring a smooth supply chain from production to delivery.

• Implemented systems for inventory management and order fulfillment, providing a seamless customer experience from product selection to doorstep delivery.

Results:

• Successful Business Registration & Compliance: The apparel business was fully registered with all necessary licenses, and GST compliance was ensured from the start, allowing for smooth operations.

• Strategic Market Entry: The client’s brand was positioned as a trendy, affordable option, attracting a significant following among the target demographic.

• E-commerce Success: The website launch was successful, generating a 30% increase in traffic within the first month through targeted digital marketing campaigns.

• Seamless Operations: With streamlined supply chain management and a responsive website, the business quickly established a reputation for reliability and timely deliveries.

• Steady Growth: Within six months, the business saw a 20% growth in sales month-over-month, driven by a combination of strong branding, competitive pricing, and a solid online presence.

Conclusion:

CoDN Solutions successfully helped the Delhi-based client turn their apparel business idea into reality by handling the entire process—from business registration and compliance to website development and digital marketing. The business is now positioned as a strong player in the online apparel market, poised for continued growth and success.

Client Overview

Our client is a leading Solar EPC (Engineering, Procurement, and Construction) company based in Noida, known for its expertise in designing and installing large-scale solar power plants across India. Despite their technological leadership, they struggled with inefficient financial operations, particularly in their Order to Cash (O2C) process. These inefficiencies led to delays in invoicing, cash flow constraints, and a high Days Sales Outstanding (DSO) figure, hampering their ability to scale operations.

Challenges

1. Manual Invoicing and Billing Errors: The company relied on manual processes for generating invoices. With increasing project volumes and complexity in contracts, invoicing errors became frequent. This delayed payments and created discrepancies in revenue reporting.

2. Delayed Accounts Receivable (AR) Management: Follow-ups for outstanding payments were inconsistent, resulting in a DSO of 65 days. This delay in collections put pressure on their working capital, as cash flow became unpredictable.

3. Complex Cash Application: Payments received from clients often lacked clarity in remittance information, causing delays in reconciliation. This inefficiency required significant manual intervention to match payments with outstanding invoices.

4. Inconsistent Reporting: The lack of real-time visibility into the O2C cycle made it difficult for the finance team to track overdue payments and project future cash flows, further straining financial planning.

CODN Solutions’ Approach

To address these challenges, CODN Solutions implemented a customized O2C solution designed to automate and optimize the client’s financial workflows.

1. Automated Invoicing System: We deployed an automated billing system that integrates with the company’s project management software. This allowed for the generation of accurate, timely invoices linked to project milestones, reducing errors by 95% and cutting the invoicing cycle from 10 days to 6 days.

2. Enhanced Accounts Receivable Management: Our team implemented a structured AR follow-up mechanism with automated reminders for overdue invoices. This included setting up escalation protocols to ensure timely communication with customers regarding pending payments. The DSO was reduced from 65 days to 45 days within six months.

3. Cash Application Automation: We introduced an automated cash application system that leveraged AI to match incoming payments with outstanding invoices. This reduced manual reconciliation efforts by 80% and increased the accuracy of payment processing. As a result, cash flow tracking became more precise, helping the client plan for future projects with greater financial clarity.

4. Real-time Reporting and Analytics: Our solution provided the client with real-time reporting dashboards, offering visibility into every step of the O2C process. This allowed them to monitor overdue invoices, track customer payment behavior, and forecast cash inflows more accurately.

Results

– Invoicing Efficiency Improved by 40%: The automated invoicing system reduced errors and delays, allowing invoices to be generated 40% faster, from 10 days down to 6 days.

– Reduction in DSO by 30%: With improved AR management, the client saw their DSO drop from 65 days to 45 days, accelerating the speed of collections and improving cash flow stability.

– Increase in Cash Flow by 25%: The combination of faster invoicing and more effective collections increased the company’s cash flow by 25%, providing them with the liquidity needed to fund new projects and meet operational demands.

– Operational Cost Savings of 20%: The streamlined O2C process and automation of manual tasks led to a reduction in administrative overheads, saving the company 20% in operational costs related to financial management.

– Higher Customer Satisfaction: With more accurate and timely invoicing, the client received fewer payment disputes, improving their relationships with customers and fostering a more reliable revenue stream.

Conclusion

By partnering with CODN Solutions, the Solar EPC company in Noida was able to transform its O2C process into a streamlined, automated function that directly contributed to improved cash flow, reduced operational costs, and enhanced financial visibility. These improvements enabled the client to scale their operations more effectively, supporting their goal of expanding solar energy installations across India.

CODN Solutions continues to support the client with ongoing optimization of their financial processes, ensuring they remain efficient and adaptable as their business grows.

Key Metrics

– 40% Reduction in Invoicing Cycle Time

– 30% Reduction in DSO (from 65 to 45 days)

– 25% Increase in Cash Flow

– 20% Reduction in Administrative Costs