Fraikin (pdf 1 808ko)

CUSTOMER TESTIMONIAL
Fraikin strengthens trade credit risk management
with cloud-based Tinubu Risk Management Center
Solution Overview
The Challenge
FIND A SOLUTION TO SUPPORT NEW CREDIT RISK MANAGEMENT POLICY
AND PROCESS ACROSS COMPANY LOCATIONS
Fraikin was working with Tinubu
Square since 2004 to manage its trade
credit insurance. In 2010, recognizing
how its business model evolved, the
company asked Tinubu Square to help
revise its approach to credit insurance
for longer term contracts and establish
a better process for credit management
workflows and decision making. By
implementing the cloud-based Tinubu
Risk Management Center (RMC SaaS),
Fraikin is now able to fully evaluate
prospects, better qualify their client
portfolio and improve credit decisions
when estimating clients’ development
potential.
Industry: Transportation & Logistics
Geography:
France, Spain, UK, Switzerland, Poland,
Morocco, Czech Republic, Slovakia
www.fraikin.com
Challenge
Revise trade credit insurance strategy
for evolving business model
Establish a more suitable system for
customer risk assessments and credit
management workflow within the
Fraikin Group and 200 branch
locations
Centralize visibility of consolidated
trade credit exposure
Fraikin is the European leader in the
and uncertain global economic conditions
rental of industrial and commercial
led to a strong evolution of Fraikin’s business
vehicles, providing solutions for long and
model in 2010. The company restructured its
short-term leasing, fleet management
financial services, creating a trade credit risk
and rentals with drivers. The company
management unit and revising its approach
offers a complete service–
to credit insurance, since its
“It
was
no
longer
one-stop solutions–for heavy
current euro credit insurance
possible to maintain at the time no longer suited
goods, refrigerated, semia system of credit
trailer and other hydraulic
business needs.
vehicle hire. With a network
insurance that was
Fraikin wanted out of a strategy
of 200 branches, Fraikin serves
inadequate and
where the entire transaction
more than 10,000 customers
expensive”
was blindly covered by credit
in 10 countries within Europe
insurance and establish a
and North Africa. The company generates
more suitable system of credit risk recomrevenues of approximately €700 million
mendations and workflow that would
(€694 million in 2010) and employs more
transfer risk assessment to all business
than 3,200 people.
stakeholders. “It was no longer possible to
Long-term contracts with customers and
market constraints caused by the euro crises
Solution
T inubu Risk Management Center
(RMC SaaS) platform and excess
of loss policy
maintain a system of credit insurance that
was inadequate and expensive,” said Didier
Mathou, CFO France, Fraikin.
Benefits
Improved credit insurance strategy
T ransferred more customer credit decision
making to business stakeholders
across branch locations using Tinubu
RMC for credit assessments
Improved visibility into commitments
that can be made with a prospect
Centralized visibility of consolidated
trade credit exposure through Tinubu
RMC reporting from branches to the
company’s Group Credit Committee
Improved response to internal
control standards imposed by funding
(securitization)
The Solution
CLOUD-BASED TINUBU RMC SAAS
PLATFORM PROVES BEST SUITED
TO HANDLE CREDIT RISK
MANAGEMENT OBJECTIVES
“Tinubu Square is now
part of the culture at Fraikin.
More than 300 people use
the Tinubu Risk Management
Center daily to assist
them in their trade credit
decision making.”
Fraikin consulted extensively with major
credit insurers and credit management
vendors to study existing solutions, the
quality of information available and the
ease of integrating solutions into Fraikin’s
existing business processes. Following
this consultation and evaluating a short-list
of potential vendors, Tinubu Square proved
best able to handle the specifics related
to Fraikin’s business and credit risk management objectives with the cloud-based
Tinubu Risk Management Center (RMC SaaS).
Tinubu RMC was assessed to be reliable,
friendly and quick to implement at a very
favorable project time and cost. Due in part
to the prior collaboration between the two
companies (since 2004), the deployment of
Tinubu RMC required only a few weeks.
Didier Mathou,
CFO France, Fraikin.
The Benefits
Working with Tinubu Square, Fraikin
improved risk management by
implementing both Tinubu RMC and
insurance excess of loss covers only in
situations of exceptional losses, such as
peak risks and high frequency risks.
Using Tinubu RMC, business stakeholders
can pull information from different databases
for more precise profiles of customers’
demands, financial stability and trade credit
risks. Workflow captures demand specifics,
such as type and age of vehicle and lease
terms, and requests the most appropriate
lines of cover.
Tinubu RMC provides business stakeholders
Branch locations may now, if all conditions
with better qualification of customer
are met, give instant response to their
contracts and selling recommendations.
customers and have greater freedom to
The new system and policy
make decisions beyond the
implemented through Tinubu “Tinubu RMC is
recommendations of insurers
Square accelerates the deci- no longer a topic of
based on information from
sion-making process about discussion because it
Tinubu RMC. This previously
customers and facilitates
took several days previously
is used by everyone;
easy information sharing
but now can be managed
all are convinced
from branch locations with
in a few seconds. Moreover,
the company’s Group Credit it’s a quality tool”
using Tinubu RMC, branches
Committee in Paris.
can now report exposure in
real-time to the Group Credit Committee by
The fineness of the data provided by Tinubu
agency, group of agencies, customer or any
RMC and its ease of use quickly won the
group of customers.
support of all users: “RMC is no longer a topic
of discussion because it is used by everyone; all
are convinced it’s a quality tool,” said Didier
Mathou.
w w w.tinubu.com
Paris
London
N e w Yo r k
Montreal
Mumbai
Singapore
Fotos: fotolia
RISK REDUCTION, IMPROVED EFFICIENCY, BETTER MANAGEMENT OF TRADE CREDIT AND INSURANCE,
REAL-TIME VISIBILITY FOR KEY STAKEHOLDERS