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April DSO registered at 74 days. This represents a 2 day decrease from prior
month March, and no change from this same time last year 2010.
Increases in DSO were seen in ASPAC and Latin America, while EMEA and
The Americas saw marginal reductions for the month of April. The overall 2
day reduction in DSO from prior month is largely attributable to lower
Maintenance A/R, driven by the following customer’s; Pepsi, 3M, NV
Trinfove, Whirlpool, Stanley Black & Decker, Compagnie, and Dell.
The tentative Cash Collection goal set for Q2 2011 is $175MM. For the week
ending May 21, 2011, our Q2 cash receipts totaled $99.5MM. With 5 weeks
remaining in the quarter, we will need to collect a little over $75MM to
achieve the established target. We encourage the collection teams
worldwide to continue the recovery focus and to heighten
communication around any cash/customer issues that could impact
attainment of the overall goal.
April DSO & Cash Collections
O
Inside This Issue
1 April DSO & Cash Collections
2 Credit & China
3 A few minutes with Tammy Cunha
4 Getting FOCUSED
5 JDA Welcomes Omar Rodriguez
JDAccounts Receivable
VOLUME 2 ISSUE 16
May 2011
30
45
60
75
90
105
120
135
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
Regional DSOs
North America Latin America Europe AsPac
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PAGE 2 JDACCOUNTS RECEIVABLE
“To be successful in business you have to be an innovator and disruptor. Disrupt yourself before someone else
does it to you.”
Meg Whitman, former CEO of
Ebay
Read more:
http://www.brainyquote.com/quotes
/authors/n/nelson_mandela.html#ixz
There is more that goes in to cash and DSO performance than merely collecting
receivables. To get there, we heavily depend on our Billing and Revenue Recognition
counterparts who are key contributors to the contract to cash cycles – this month we
recognize Tammy Cunha.
How long have you been with JDA? Six months
Birthplace? San Jose, California.
Education? BS in Accounting. Also a Certified Public Accountant (CPA) in both
California and Arizona
Family: Two sisters who are also my best friends
How did you get in to the Accounting profession? My college professor and counselor
told me that I was not cut out to be an attorney because I was too black and white and
that I should take an accounting class. She was right.
What book are you currently reading? The Scarecrow, by Michael Connelly
What is your all time favorite movie? Too many to mention – any comedy
Current Ipod Download? Black Eyed Peas and Seether
One thing most people don’t know about me? I ride motorcycles
Favorite Travel Spot? Thus far - Hawaii
When I am not at JDA I am? I am walking my dogs
Recognizing Revenue Performers – Tammy Cunha,
JDA Revenue Manager, Scottsdale, AZ
Credit & China
Tammy Cunha at FOCUS with Jennalee Bernard
.
JDA’s standard payment terms in China are prepayment in advance of a software shipment and/or associated services, and we
frequently receive inquiries as to why, in such a competitive and growing market, we have minimal appetite around unsecured
terms - the argument being, more flexibility in our payment terms, could equate to increased revenues and greater market share
in a strategic region. Our prepayment policy arose from a China deal gone sour which exposed JDA to an uncollectable
receivable and bad debt risk. Not necessarily too surprising, as China’s credit and payment infrastructure continues to lag
behind most countries in terms of risk, clearing systems, and preferred methods of settlement. The most common form of
payments are cash, drafts (Promissory Notes), and wires. Check usage is limited and carries additional risk concerns as their
lifespan is limited to 10 days; furthermore, not until 6 years ago with the introduction of a new clearing system in China, there was
no secure way of processing a check as an electronic transaction. While the banking system continues to evolve in
sophistication, there are additional risk concerns which add to the complexity of doing business in the region. Standard and most
acceptable credit terms in China range from 60-90 days, and in some instances, can reach six months to a year depending on
the customer. To complicate matters, the legal structure governing payment settlement, recovery options, and business failures
has not developed to the extent that suppliers are able to take risk with some degree of legal recourse. Lastly, credit and
financial data on Chinese companies can be very difficult to come by, and in many instances, the expectation of securing
financial statements is considered a personal affront.
With that said, will JDA ever consider alternatives to our prepay policy? Yes and no. The first line of defense should always be
prepayment, however, alternatives might include a Confirmed Letter of Credit or Standby Letter of Credit through an
acceptable international bank. For any other payment options, such as straight open account or extended terms, ultimate
overrides can only be made through an appeal process to executive management. With an economy growing at a rate of 10-
20% year-on-year, the logical assumption is that China’s credit structure will also evolve at an equally steady pace – and as JDA
continues to gain a foothold in the region, we will be increasingly challenged to meet unique customer and business needs.
3
PAGE 3 JDACCOUNTS RECEIVABLE
This marks our third year where the Credit & Collections Team has had the unique privilege of attending FOCUS. In addition, this
year, our Revenue Manager, Tammy Cunha, was a first time attendee representing the Revenue Team, accompanied by
Javier Vela, Senior Credit Manager, and I, both representing the Credit & Collections team. Some might ask why Accounting
associates would see a need to participate in FOCUS and what benefits we derived from our attendance – here’s just a few
thoughts around my experience.
Consider this – FOCUS draws over 1700 attendees from all corners of the globe largely comprised of our customers, as well as
JDA associates that support our client base in a multitude of ways. From a credit and collections perspective, FOCUS provides
us with invaluable opportunities to meet our customer’s face to face and to better understand how they use our software
applications. Through a variety of the User Sessions, it also helped us gain a completely new insight in to our own products
which are repeatedly part of our daily dialogue during a routine collection call, credit extension, or billing issue. It is truly
impressive to hear one success story after another from customer’s that previously were just a “name” within our portfolio of
clients. To hear how Goya Foods increased productivity by 700% in their overall supply chain activities, achieved 99% service
levels to their customers through JDA’s Vendor Management Inventory solution, and enabled them to reduce order taking
from a 30 minute manual task to a 2 minute one, clearly showcases our company in a whole new perspective. And that was
just a tip of the iceberg.
Imagine if you will, multiple concurrent user sessions crammed in to three days being delivered by JDA’s customers worldwide.
Needless to say, it was slightly overwhelming trying to determine which sessions to attend, however, each one was unique in its
own right, and enabled us to develop key contacts which are the bane of our existence. While some contact names were
familiar, many were not, and the sessions and social activities provided us with tremendous opportunities to interact with clients
at a whole different level. To maximize my experience, I sought out many of the clients that make up my portfolio including,
Mars, VF Services, Staples, Rona, Pepsi Co, TE Connectivity – just to name a few. Collectively, we also made every effort
possible to introduce ourselves to unknown customer’s, exchange business cards, names, contact information, etc., and
attempt to understand how we could improve their overall experience with JDA, not necessarily from a product perspective,
but more from a support and order to cash experience. Lastly, FOCUS allowed us to meet a vast array of JDA partners whom
we normally only know by name, telephone contact, or e-mail. Again, to put faces with names in a less formal setting, and
being able to have discussions around our respective processes was huge towards maximizing that collaborative spirit.
And of course, all of this showcased in the framework of the General Session, kicked off by our CEO, Hamish Brewer, who
spoke to us about JDA’s vision, innovation, and how our range of solutions are designed to meet each piece of the Supply
Chain cycle. Or Meg Whitman’s keynote speech around her incredible journey of taking eBay to a multi-billion dollar global
company in a few short years by keeping several steps ahead of the game, with this underlying message; “disrupt yourself
before someone else does.” All very worthwhile and can also be viewed within the JNet link at,
http://jnet.jda.corp.local/Solutions/FOCUS/2011/default.aspx?PageView=Shared.
In summary, FOCUS proved to be an invaluable and fun experience from beginning to end, and we are grateful for the
opportunity. We also extend our kudos to Heather Loisel, SVP Marketing, her team, and the many JDA associates who do a
fantastic job in pulling together an extraordinary conference.
Getting FOCUSED, by Jennalee Bernard
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PAGE 4 JDACCOUNTS RECEIVABLE
Global Credit Services Team
The Americas:
Brendan Carney, Collection Specialist, Select
Accounts 480.308.3301, [email protected]
Cary Erickson, Collection Specialist, D - M
480.308.3667, [email protected]
Omar Rodriguez, Collection Specialist, #’s - C
480.308.3735, [email protected]
Jennalee Bernard, Collection Specialist N - Z
480.308.3365, [email protected]
Javier Vela, Senior Credit Manager
480.308.3845, [email protected]
Judy Baeza, Accounts Receivable Accountant
480.308.3000, [email protected]
Zach Ward, Sr. Accounting Specialist, 480.308.3775
EMEA:
Colm Egan, Credit Manager, EMEA
44.1344.354580, [email protected]
Jonathan Amphlett, Collection Specialist, UK, Agents,
& VARS, 4.1344.354.563, [email protected]
Giovanni Ragone, Collection Specialist, Italy, Portugal,
Spain, Eastern Europe, Mid East, S. Africa
44.1344.829761, [email protected]
Sarah Bradshaw, Collection Specialist, France, Benelux
Nordics, Austria, Germany, Switzerland 44.1344.829701,
ASPAC
Pauline Gwee, Asia
65.6305.4387, [email protected]
JDA welcomes welcomes Omar Rodriguez to the Credit,
Collections & A/R Team. Omar joined JDA as a contractor
mid January 2011, and became a permanent associate and
member of the collections team on May 15th. Omar’s
primary responsibilities will include supporting the
collection activities for Mexico and Latin America working
closely with our JDA offices, in Mexico, Brazil, and Chile.
Additionally, Omar will have collection ownership of a
domestic piece of the A/R portfolio for the letter grouping
A-C.
Omar has prior collections experience, most recently with
First Federal Mortgage. He is a graduate of the University
of Phoenix with a BS in Accounting, which he earned
through a full Baseball scholarship. Born in Nogales,
Mexico, Omar is bilingual in Spanish. He is a baseball
fanatic, and follows his favorite team; The Yankee’s.
Welcome aboard, Omar!
Questions about our Newsletter, or interested in being a contributor? E-mail us at [email protected]
JDA Welcomes: Omar Rodriguez
In our Mail Box – your feedback counts.
“Javier and team -Nice work! This is a nice read. The Motley
Fool article is a nice addition. Would be great to have similar
articles in future newsletters.”
“ Nice job both with the collections and the news letter. I liked
the Motley Fool piece.”
“Look forward to the new credit approval process rollout, and
good to see other accounting folks featured in the Newsletter.”
