Automated Credit Management – Medical Device Distribution
The Challenge:
A medical device distributor with 800+ hospital customers manually reviewed credit limits and payment terms for each order requiring 15-20 minutes per review. Credit hold releases averaged 2-day delays affecting customer satisfaction, and lack of predictive analytics resulted in 4.2% bad debt write-offs ($680K annually) from extending credit to risky customers.
The Solution:
Implemented Dynamics 365 Finance credit management with automated credit scoring using Azure AI analyzing payment history, financial statements, industry trends, and external credit data in Fabric. Power Automate enforced credit policies with intelligent exception routing to credit managers via Power Apps. Copilot provided credit analysts with risk assessments and recommended actions. Power BI tracked DSO (days sales outstanding), aging trends, credit utilization, and predictive bad debt exposure by customer segment.
Result:
Order credit review time reduced from 18 minutes to 2 minutes through automation, credit hold releases accelerated from 2 days to 4 hours improving customer experience, and predictive risk models reduced bad debt write-offs from 4.2% to 1.8% saving $390K annually. DSO improved from 48 days to 41 days improving cash flow by $840K, and credit team capacity freed for strategic customer relationship management.