How OVRSEA automated 70% of AR actions and reduced DSO

How OVRSEA automated 70% of AR actions and reduced DSO with a team of one

OVRSEA is a freight forwarder whose mission is to make their customers’ supply chains more efficient, resilient and sustainable. Experiencing cash flow challenges, OVRSEA turned to Upflow to significantly improve their Days Sales Outstanding (DSO) and client relationships.

70%

of actions are automated, saving time and avoiding the need for extra headcount.

28%

reduction in DSO, in their best month (38 days to 27 days)

75%

average Collection Effectiveness Index (CEI), indicating a strong ability to collect cash from customers.

Mission statement

OVRSEA is a freight forwarder combining digital technology and advanced business expertise. Their goal: to make supply chains more efficient, resilient and sustainable.

FTEs

150

Industry

Transport & Logistics

Offices

Paris, New York, Barcelona, Milan

Stack integrated with Upflow:

In-house billing and ERP software

Timely payments are a must for OVRSEA’s business model

Lolla Di Vico, OVRSEA's Finance Operations Manager, explains, “Our business model is a little bit special because we organize a transport from A to Z for our clients. So it's a little bit like a travel agency, for example, that will organize a trip for its client. Except that as a transport commissioner, we pay all the costs in advance.”

This means OVRSEA pays suppliers quickly but relies on client payments to maintain a healthy cash flow. "The more our client takes time to pay us, the more we risk having a cash flow need," notes Lolla.

When Lolla joined OVRSEA in 2021, several macroeconomic trends had come together to also make cash collection a business imperative. The major one was the high cost of shipping following the COVID pandemic, which was causing further strain on OVRSEA’s treasury, with them having to pay their suppliers in advance of receiving funds from customers.

Their cash collection issue was becoming urgent and DSO was becoming a major problem for the business.

At the same time, the company was growing, volumes of transport were increasing and OVRSEA was recruiting more sales and people. This created the added issue of an increased number of invoices to be managed and the amount of manual work that was needed was becoming untenable. With Lolla as the only person managing cash collection, she knew something needed to change.

Our business model is a little bit special because we organize a transport from A to Z for our clients…We pay all the costs in advance.

Why Upflow? A perfect fit for OVRSEA's needs

Upflow offered several features that directly addressed OVRSEA's challenges:

Automated cash collection

"Automatic emails are a huge time saver," says Lolla. Upflow automates email follow ups, freeing Lolla and her team to focus on more complex cases. 70% of OVRSEA’s collection actions are now automated, saving them significant time and resources. It has also meant OVRSEA has avoided having to add extra headcount in Accounts Receivable, with Lolla continuing to manage it all thanks to Upflow.

Data-driven strategies

Upflow's analytics go beyond simple overdue dates. "We quickly realized that recovery plans based on deadlines alone weren't ideal for our business," explains Lolla. Thanks to customization in Upflow, OVRSEA has developed a strategy over time to prioritize collection efforts based on invoice amounts. “We can quickly end up with invoices of 50k, 60k or even sometimes 100k euros. So being able to make our own recovery plans has allowed us to craft our own follow up for these important invoices”. This approach has ensured they focus on collecting larger outstanding balances first, maximizing the cash flow impact.

Improved customer communication

Upflow's customizable email templates ensure a professional and positive client experience throughout the collection process. "We’ve created automated emails that are sent even before the invoice due date and are simply friendly reminders," notes Lolla. "They don't feel aggressive, which helps maintain a good client relationship while helping us be proactive in our cash collection." This has led to an average email open rate of between 70-80%, which shows customers are engaged and comfortable with the process.

Upflow helps us preserve the quality of our customer relationships. And that's something that's very important to us because we want the OVRSEA experience to be pleasant from beginning to end.

The results: OVRSEA gets paid faster with a proactive approach to cash collection

The impact of Upflow on OVRSEA's business is undeniable:

Reduced DSO: OVRSEA achieved an average DSO of 34 days, a significant improvement over industry standards. In their best month, their DSO dropped from 38 days to 27 days, translating to a cost saving of €70,000.
No need for extra AR headcount: Automating 70% of collection actions has freed up valuable staff time. Lolla can now focus on strategic tasks and complex cases. With more growth on the horizon, OVRSEA are confident they won’t need to hire additional headcount in AR, knowing that Upflow is the perfect tool for Lolla to continue managing large volumes of invoices herself.

Integration: Upflow works seamlessly via API with OVRSEA’s Atlas platform

OVRSEA uses an internal platform called Atlas to manage various aspects of their business, from pricing and transport to billing.

OVRSEA leverages Upflow's API to create a real-time, two-way data flow between Atlas and Upflow. "As soon as the invoice is issued on our Atlas platform, it is also registered in Upflow," says Lolla.

Both platforms reflect the latest information, providing OVRSEA with a clear and up-to-date view of their financial standing. The API ensures data consistency across both systems, minimizing errors and streamlining processes.

OVRSEA is particularly impressed with the API's flexibility. "The API link allows us to do all of that in a pretty fast way," says Lolla.

As soon as the invoice is issued on our Atlas platform, it is also registered in Upflow.

The human side of Upflow

OVRSEA isn't just happy with Upflow's features; they also appreciate the excellent customer service. "Vanessa, our Upflow account manager, is great," says Lolla.

"We feel listened to and supported. She regularly provides data and suggests ways to improve." This ongoing partnership ensures OVRSEA gets the most out of Upflow and continue to optimize their collection process.

In summary: Upflow’s impact on OVRSEA’s business

Upflow's automated collection tools and data-driven insights have significantly impacted OVRSEA's financial health and client experience:

OVRSEA gets paid faster: OVRSEA achieved an average DSO of 34 days, and a best DSO of 27 days - a substantial improvement that translates to faster access to their cash to continue growing their business.
Streamlined operations: Automating 70% of collection actions frees up valuable finance team time for more strategic tasks.
Customer relationships nurtured: The proactive approach OVRSEA can take to customer communication through Upflow fosters positive interactions throughout the collection process.
Real-time data & analytics: OVRSEA leverages their financial and AR data inside Upflow to continuously optimize their collection strategies and make data-driven decisions.
Seamless integration: Upflow's API ensures real-time data synchronization between OVRSEA's custom-built Atlas platform and Upflow, eliminating discrepancies and streamlining workflows.

Finance Teams

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