Who are NEXUM™?
We are one of the UK's leading contract to cash management specialists,
working primarily within the corporate and professional services markets. Ours is a software-centric, consulting-led solution, combining technology, workflow and know-how to help organisations optimise the contract-to-cash process, accelerate collections and improve financial hygiene.
Who do you work for?
We work for a number of international and UK brands, including Heineken, Peugeot Citroen, Dixons Carphone, First Utility, South East Water, Travis Perkins, E.ON, The London School of Economics, but we also have small to medium sized clients who rely on NEXUM to generate income by support the cash collection services they offer. Within the professional services sphere, clients include Herbert Smith Freehills, Pannone, TLT, and Blake Morgan to name a few.
What is NEXUM™ Software?
Our experience has seen us develop a new way of working and thinking to better address the rather unique challenges arising from increase compliance and the need to predict outcomes. The technology we use to reengineer the contract to cash process and transform performance across key metrics and business targets is our software, simply called NEXUM.
Why adopt a distinct solution?
Because we recognised that the role of the individual and their mindset, methodologies and behaviour impact heavily on financial risks to our client base and that this coupled with regulatory compliance from bodies such as the FCA, OFGEM and OFWAT the need to focus on this significant 'human factor' required a new approach. Add in the customary curve balls of legacy technology and inefficient processes and you have yourself a multi-dimensional challenge that you have to respect with a bespoke approach in order to deliver real value.
How does it differ from other contract to cash management solutions?
Our major differentiator is that NEXUM™ goes beyond just software. It's not about a 'fit and forget' product sitting in a discrete department sending out reminder letters and aiding query resolution. Yes, the technology alone can certainly bring a huge degree of control and functionality to the collections process. Indeed, its cash acceleration capabilities are already well-proven, slashing average debtor days by up to 20% in one instance. But it is merely the starting point of what we call the 'profit journey'.
Where does that journey take you?
The work around cash and collections, which is largely software and business rules driven, is typically the foundation project. Demonstrable and significant change should be seen within three to six months. From there we move on to more complex management of compliance elements where again software and business rules combine to give you a comprehensive toolset of thresholds and limits, triggers and warnings. These underpin the ability to monitor and make decisions in real-time, which is critical if one is to pre-empt issues and proactively manage the customer from contract to final payment, and a complete contrast to the traditionally retrospective nature of business intelligence and financial reporting solutions.
But we also seek to go one step further by indentifying and recording the behaviours that contribute to risk and issues. Or put another way, we don't just accept information for what it is, we look beneath to ascertain and this data coupled with other information stored can be used to profile outcomes and risks. And if you are meticulous in charting causative behaviour, you soon have yourself a huge data set for onward analytics.
Knowing where risks to payment are and how they impact on collections management; being able to share these across the organisation so there is a collective understanding of the process, and its purpose and its potential for transforming performance; this is at the heart of NEXUM. Because as soon as you have a clear picture of who is doing what and why, you can tackle the 'how' challenge - how do we change this trending behaviour, or how do we better support certain individuals, or how do we modify these working practices, or how do we safeguard against similar problems in the future. Get the 'how' right and you're continuing on your profit journey to destinations including reduced debtor days, lower write-offs and improved working capital.
It is an interesting proposition but what about system integration?
NEXUM™ integrates with all leading accounting and ERP systems such Oracle, SAP, PeopleSoft, Sage etc - and it's a deliberately low impact integration process. There's no appetite for tying up loads of resource for weeks on end just to get to first base. That's why we've invested heavily in a data engineering team that uses applied techniques of analysis, integration and exchange to lift that burden and get to test file stage quickly and painlessly.
What is the NEXUM Lab?
The NEXUM Lab also works at another level, slightly harder to articulate as it's a bit of a shapeshifter. It can be an extended brainstorm, stakeholder collaboration project, training exercise, mentoring initiative, change management programme, it can be all these things and more. It reflects the sophistication and potential within our approach to contract to cash management in particular. Remember we're not just looking at software and process that monitors the numbers and offers prompts to action: we're looking at identifying the behaviour behind the numbers and the rationale behind the response - or lack of one. For example, if we find certain 'root cause' behaviours endemic amongst a customer or debtor group, and they are seriously impacting on collection performance, or perhaps the problems are limited to a small handful of 'problem children', it's in the NEXUM Lab that one can discuss strategic options going forward?
Where does the value lie?
The value lies first in hard cash. An optimised collections process accelerates cash in, improving working capital, reducing debtor days, reducing interest payments, improving collections realisation, lowering bad debt. As regards compliance improvements, the value lies very much in the real-time data the system gives you as to where an account is and what has and is about to happen - enabling you to take timely remedial action. Too much reporting is done retrospectively with aged data, and then it's too late, the opportunity for turnaround has gone. It's like looking at a patient's notes at the end of the week only to find he died on Wednesday. But the ability to look at the micro level - addressing individual issues or areas of concern - or at a macro level -analysing trends and devising corrective strategies - ensures an organisation can respond proactively and work towards a higher standard of financial fitness. Improvement will be evident in better risk management, reduced debt levels, high levels of service all secure in the knowledge that NEXUM has monitored every activity against key compliance checks