Country: Peru
Sector: Industrial chemicals
Number of clients: 800

1. Executive Summary

Quimtia's main objective was to achieve proper credit management from both a financial and sales point of view. Associating the variable of debt reduction with the needs of granting credit to its customers, they sought to ensure that the collections experience was covered with the Yndika tool, automating repetitive functions and ensuring compliance with the company's policies.

2. The Company

Quimtia is a company which belongs to “Grupo Fierro”, with more than 30 years in the Peruvian market, dedicated to the commercialisation and manufacture of industrial chemicals. It is present in Colombia, Brazil, Argentina and has a business in Hong Kong. In Peru it operates in more than 22 business segments and serves around 800 customers, 73% in the local market and 27% abroad.

It has 5 business units:

  • Food: dedicated to the resale and manufacture of food additives.
  • Feed: dedicated to the resale and manufacture of chemicals for the animal sector.
  • Specialty Chemicals: which works with the main business units: mining, paper, oil and large industry.
  • Industrial Inputs: engaged in the resale of textile dyes, chemicals for the textile sector, basic chemicals such as fibreglass and other cleaning products.
  • Human Health: diagnosis and neonatal screening in Peruvian hospitals.

3. Challenges

  • Challenge 1: Reduce overdue debt without slowing sales growth.
  • Challenge 2: Reduce the response time in credit admissions to customers.
  • Challenge 3: Lower the default rate.

4. Solution

  • Solution 1:

    From Yndika they have been able to evaluate new and/or existing clients in the portfolio, knowing the level of risk associated and the maximum amount of credit line that can be granted. Such evaluation is done continuously to ensure that users involved in the collection can know if any negative change occurs in their portfolio.

    In addition, the collections processes have been incorporated, automating the sending of e-mails to customers, allowing them to ensure and have traceability of compliance with the company's collections policies, resulting in a reduction of overdue debt.

  • Solution 2:

    From the admission module, the credit approval rules have been automated, allowing sales representatives to know whether a company can be subject to credit or not, as well as providing the finance area with risk indicators that allow them to know:

    • Internal payment behaviour, with other suppliers and financial entities.
    • Default risk (RIIM).
    • Suggested credit line.
  • Solution 3:

    Atlax 360 has developed for Quimtia a predictive risk model that works with artificial intelligence, specifically Machine Learning techniques for pattern recognition (e.g. a default).

    Having a predictive indicator such as RIIM (Immediate Default Risk) available, which assesses the risk of default of a debtor in the short term on a daily basis, has enabled them to generate differentiated strategies when approving/denying a new credit and customers with recurring sales, as well as having visibility of whether their credit status changes in order to be able to apply hedging strategies.

5. Benefits

Yndika has helped to optimise the company's pillars: better customer service, debt reduction and sales growth.

  • 100% of the admission of new credits is done through the Yndika platform.
  • Credit approval time reduced from 4 days to 1 day.
  • The NPL ratio was reduced from 20% to 4%.
  • Segmentation of customers into different business units.
  • Homogenisation of the internal credit process through the Yndika tool.

"Our goal is to have a healthy business, commercially and financially speaking, with very good customers who pay on time and a reduction of debt that can only be achieved by collecting correctly. In that sense, the Yndika tool is precisely adapted to our two pillars".

Manuel Piñeiro (Quimtia Finance Manager)