Joshua Burnett, CEO of 9ci, Inc'

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Joshua Burnett, CEO of 9ci, Inc. Jim
Torongo, VP Of Credit at Hartmarx Corporation
Present
Improving Relationships through Agile Deduction
Management
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Agile Deduction Management Agenda

• Process Overview
• Hartmarx challenges
• Getting management buy-in
• Cross-functional teams
• Measuring performance
• Software
• Clearing the back log
• End results

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9ci, Inc. Overview

• 9ci offers the only fully integrated, web-based
  solution to handle the apparel footwear
  industrys specific cash application issues,
  dispute tracking, analysis and resolution,
  collections management, and trade fund management
  applications.
• Consulting Software Co-sourcing
• Auto Cash Application
• Collection/Dispute and Deduction Control
• Trade Promotion Management
• Business Insight

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9ci, Inc Customers.
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HartMarx Overview
Hart Schaffner Marx has a proud 100-year
tradition of quality, innovation, style and
customer service - a tradition that is both the
foundation for our success in the past and our
chief distinction today.  From high-profile,
branded tailored clothing that defines the modern
workplace, to contemporary, trend-right
sportswear and women's apparel, Hartmarx brings
differentiation and distinction to every consumer
segment we serve..
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What Does Agile Mean?

• Characterized by quickness, lightness, and ease
  of movement
• Refers to the speed of operations within an
  organization and speed in responding to customers
  or vendors (reduced cycle times) MITs Sloan
  Business School

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Agile Deduction Managements 5 As

• Access 2 screens 2 clicks, Easy to for all to
  get to needed info, SOX monitoring for data
  changes
• Adaptability info in and out from multiple
  sources, processes that are able to respond
  quickly to external change
• Automation Workflows, routing, best practices,
  communication, management escalation
• Accountability Customers, collectors,
  departments, sales, data feeds (Generate the
  perfect invoice!)
• Analysis View customer trend, root cause
  analysis, cash flow analysis

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Utopia
Wire Info Feeds right into A/R
EFT funds to bank
Bank
Electronic PO and Invoice Exchange
Customer
Remittance detail feeds right into your A/R. 100
match and no deductions
Your ERP
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Nice to dream!

• Sure thing, right? its not real!
• To Many different ERP formats
• ERPs A/R systems lack functionality
• Thats why EDI was created
• Deductions are how business is done for Sales
  promotions, Compliance errors, etc

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Challenges

• Error prone manual processes
• Old, antiquated system
• No efficient way of tracking deductions
• Juggling spreadsheets with many people
• Slow, multiple screens.

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As a recent Microsoft white paper put it.
Excel Hell
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Challenges

• No work flow ability or set standards
• Not capturing all the electronic info
  from retailer.
• Large clerical staff
• Long, manual error prone cash-application
  process.

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Challenges

• Not capturing the valuable data on 820s,
  web,etc..
• Some reports required 40 hours to prepare
• Needed cross department visibility
• Too much Research and
• Little if any Root Cause Analysis

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Youre Not Alone

• AR Staff Productivity on ERPs
• Oracle Decreased by 38.5
• JD Edwards Decreased by 33.3
• PeopleSoft Decreased by 42.9
• CRFs 2002 Credit AR ERP System
  Study

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3 Main Processes Diagram
Auto Cash App
Send Remit and Customer Takes Deduction
Deduction Coded
Customer
Deduction Collection
Auto Match Deduction To Deal
Actuals Captured
Sales Promotions
Perfect Invoice
TPMS
Sales and Corporate Plan Budget
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4 keys to Successful Auto-Cash
1. Import of electronic files 2. Rapid key entry
of manual checks 3. Correction process 4. Export
into ERP or accounting system
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(No Transcript)
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Getting Management Buy-in

• Selling the benefits to senior management
• Cost benefits
• Steering committee
• Removing road blocks

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Cross-functional Team

• Prevention
• Remediation
• i. Change policy and procedure
• Credit as team leader
• Roles of members
• a. I.T. b. Customer Service
• c. Credit d. Traffic
• e. EDI f. Sales
• Focus
• Exemptions
• Goals

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Measuring performance

• Reason codes
• Sub reason codes
• Trends
• Top 10 offenders
• Recoveries

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Measuring performance Continued

• Settlements
• By responsible department
• Profitability by account
• Goals (reducing the in-flow)
• Vendor scorecards

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9cis Software

• What you need
• Work flow
• Monitoring follow up
• Setting standards
• Imaging

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9cis Software

• Try to automate as much as possible
• Creating feed back loops
• Defining statuses
• Auto cash
• 820 and 812 feeds

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Clearing the back log

• Get it done
• Goals
• Putting together packages
• What to include
• Negotiating
• i. Dont engage in positioning bargaining
• ii. Base settlements on fairness

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Clearing the back log (cont.)
A. How to deal with multitudes i. What is their
cost? ii. What is your cost? iv. Define what
you are settling v. Get it in writing B.
Getting to the right person i. Go up the
ladder ii. Dont give up iii. Sign a
confidentiality agreement
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Hartmarx end results

• Cut down in-flow by 50
• Resolved major account back-log on track to
  complete by August
• Settling accounts in rapid fire
• 10 mos. of improvements for trends
• Reduced preparation time from 40 hours to
  literally a few seconds

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Hartmarx end results (cont.)

• Reduce clerical backlog by two thirds
• Automated processing resulting in saved time and
  money
• Improved departmental communication
• Better relationship management with clients
• Accelerates customer service

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Questions and Answers
Joshua Burnett And Jim Torongo THANK YOU
Call us or visit us on the web www.9ci.com
Joshua_at_9ci.com 847-240-9000