The consulting expertise of Alan West Group can help you improve your bottom line by using sophisticated modeling tools and techniques. We have extensive practical experience in remittance float work and provide unmatched results for clients dealing with float and collection issues.
We offer wholesale and retail remittance float studies to identify strategies to reduce costs and improve financial performance by:
- Profiling customers to identify potential for alternative collection methods
- Determining appropriate size and locations for lockbox network
- Identifying strategies to reduce mail float and improve check clearing times
- Improving bank relationships by determining cost-effective business allocations
Our normative approach to float studies follows a tested methodology described below and makes use of the Phoenix-Hecht Collection Model with its Postal Survey mail time databases.
- Scope Definition and Planning: This step identifies what we will review, the general outline of the project and issues unique to the client’s situation.
- Data Collection: The float analysis is straightforward, but it is very dependent on gathering a representative sample of your customer remittance data. Methods for capturing data differ depending on the volume of remittances in a typical collection cycle and the size of the payments. We work with each client to minimize costs and resources required to obtain the data sample.
- Preliminary Analysis Review: After we have transcribed the data into the Model, we will prepare a set of analyses that provide a profile of the data in the analysis, a baseline float for the existing system and ‘most likely’ alternative system configurations. We define the optimal system size and compare different scenarios for the collection network. We review these with you and plan the final analysis. We will perform as many computer optimizations as necessary to test and validate all viable alternatives and answer all your questions concerning float and location.
- Final Analysis and Report: Based on the discussions of preliminary results, we complete the analysis. We answer all questions and incorporate any unique analysis requirements to insure that you have all that you need to develop your remittance collection strategy and plan your next steps. The final report documents the results providing all relevant analyses descriptions and model output. We can discuss the report on the phone or in person in your office, as you prefer.
Please contact Don Resler at 630.717.9732 ext. 84 or email him at don.resler@alanwestgroup.com. Alan West Group is an affiliate of Treasury Alliance Group LLC.