Fraikin strengthens trade credit risk management

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 has been working with Tinubu
Square since 2004 to manage its trade
credit insurance. In 2010, recognizing
that its business model had 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, Poland,
Switzerland, Morocco, Czech Republic,
Slovakia
www.fraikin.com
Challenge
E stablish a more suitable system for
customer risk assessments and credit
management workflow within the
Fraikin Group and 200 branch
locations
entralise visibility of consolidated
C
trade credit exposure
Fraikin is a European leader in the
market constraints, Fraikin restructured its
rental of industrial and commercial
financial services (by creating a risk manavehicles, providing solutions for long and
gement unit). Fraikin wanted to establish a
short-term leasing, fleet management
recommendation and workflow system that
and rentals with drivers. The company
would transfer risk assessment to all business
offers a complete service–
stakeholders.
“It
was
no
longer
one-stop solutions–for heavy
In 2012, the company
possible to maintain wanted to dispense with
goods, refrigerated, semia system of credit
trailer and other hydraulic
credit insurance and it set
vehicle hire. With a network
insurance that was
up a more precise system for
of 200 branches, Fraikin serves
inadequate and
monitoring its customers,
more than 10,000 customers
expensive”
particularly those with a large
in 10 countries within Europe
commitment. «It was no longer
and North Africa. The company generates
sensible to continue with and inadequate
revenues of approximately €700 million
and expensive system of credit insurance »,
(€694 million in 2010) and employs more
says Didier Mathou, Chief Financial Officer
than 3,200 people.
France, Fraikin.
On the strength of changes to its business
model (based on long-term contracts) and
Solution
T inubu Risk Management Center
(RMC SaaS) platform
Benefits
T ransferred more customer credit decision
making to business stakeholders
across branch locations using Tinubu
RMC for credit assessments
I mproved visibility into commitments
that can be made with a prospect
Making better decisions faster
entralised visibility of consolidated
C
trade credit exposure through Tinubu
RMC reporting from branches to the
company’s Group Credit Committee
I mproved response to internal
control standards imposed by funding
(securitisation)
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 after 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
favourable 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
Risk reduction, improved efficiency, better management of trade credit, real-time visibility for
key stakeholders
The workflow developed when the risk
management policy was overhauled. This
gave the sales team the opportunity to
formulate their requirements as precisely as
possible (type of vehicle, age, number, hire
cost, characteristics, etc.) and to request the
most suitable lines of coverage.
Tinubu RMC provides business stakeholders with better qualification of customer
contracts and selling recommendations.
The new system and policy implemented
through Tinubu Square accelerates the
decision-making process about customers
and facilitates easy information sharing from
branch locations with the company’s Group
In this period of economic uncertainty, the
RMC is playing an essential role: the platAgencies can now, if all conditions are met,
form enables customers’ situations to be
give an instant response to their customers
assessed in real time and particular attenand regional branches have greater freedom
tion is paid to the largest commitments.
to make decisions. What previously took
«The level of information
days can now be managed
about each customer being
in a few seconds.
“The financial
entered in the RMC has become
The quality of the data pro- information and very
systematic and exhaustive»,
vided by Tinubu RMC and its detailed monitoring
says Arnaud Hillaire, Credit
ease of use quickly won the made available by
Manager France.
support of all users: “ RMC is Tinubu Square gives
no longer a topic of discussion undeniable legitimacy Moreover, by using the
RMC, management has
because it is used by everyone; to our credit risk
access to real time analysis
policy”
all are convinced it’s a quality
of Fraikin’s exposure with
tool ”, said Didier Mathou.
respect to an agency or a number of
Tinubu Square has been integrated into
agencies, or to an entity or a group. «The
the internal system to such an extent that,
financial information and very detailed monievery quarter, the editor analysts now join
toring made available by Tinubu Square gives
up with Fraikin’s credit steering committee
undeniable legitimacy to our credit risk policy»
to decide on the largest projects and discuss
concludes Arnaud Hillaire.
any commitments to be made.
Credit Committee in Paris.
w w w.tinubu.com
France
United-Kingdom
Benelux
Singapore
www.huitieme-jour.com - Juin 2013 - Photos: fotolia
To meet Fraikin’s requirements, Tinubu
Square set up its Risk Management Center
(RMC) platform that makes it possible to
cross-check different databases and to
provide sales people with a personalised
recommendation.