Trek Bicycle started out in 1976 with 5 people in a barn in Southern Wisconsin making bicycles. Today, it’s the largest bicycle company in the U.S. with 16 international distribution centers and 5,000 independent bicycle dealers around the world. Running a successful global operation means that important business processes, like collecting payments, should be as well organized and cost effective as possible. But when left alone without critique, these processes are often costly, complex, and unsustainable, which can negatively impact your customers and bottom line.
Trek needed a solution that would help it efficiently manage collections while serving its wide global base of customers. Andrew St. Clair, the Global Director of Financial Services at Trek, recognized a core problem in the process: “We didn’t have a standardized collections tool … everyday tasks, like sending reminder letters, were all done manually. We made it work, but there was no real consistency in our process. And with 60% of our business coming from abroad, it was crucial that we had a true global solution.”
An International Company Meets a Global Partnership
Trek turned to automation to solve their problems. In Esker, it found a collections management solution specifically designed to streamline global operations. The solution works similarly to how other departments use CRM software to manage critical workflow functions. Through a centralized digital interface, users can orchestrate post-sale collection interactions with greater ease, oversight and autonomy thanks to tools like payment reminder emails and rule-based task lists.
“The other credit and collections vendors we looked into didn’t have Esker’s global expertise,” Andrew explained. “One of the big benefits during implementation was how flexible Esker was. They worked with us to translate the interface into 14 different languages, engaged with our international partners on payment strategies, and even helped us in improving the look and feel of our statements. It was a true partnership.”
Today, Trek utilizes Esker in 18 offices worldwide. The company has seen a reduction in its Days Sales Outstanding (DSO) as its collections management process is faster and more user friendly for both staff and customers. Trek’s past-due percentage fell by 4% and it saw increased productivity among staff that lead to upward mobility within the company.
“The discipline that Esker drives in the credit and collections process is phenomenal,” said Andrew. “In my 20-plus years, it’s the best product I’ve ever used based on its simplicity and ease of navigating.”
To learn more about Trek and the results it experienced from improving on the collections management process, read their full case study here.