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At a Glance
Celanese Corporation, a $6.8 billion Fortune 500 chemical industry leader based in Dallas.
User:
Global Credit Manager, Celanese Corporation, Mark Walker
Challenges:
- Manage risk globally across the entire business
- Assess customers and vendors around the world, including Europe and Asia
- Review contracts and set payment terms
Solutions:
- SAP’s credit management module along with diverse information sources
- CreditRiskMonitor is their first stop for risk assessment and research
- Use the entire service—from scores to company reports to debt payables and more
- Also contribute trade data to monitor their own accounts receivable—Mark is a fan of the “hidden slow payers” report, which highlights accounts that pay you well but others slowly
Key Uses:
- FRISK® score to stay on top of public company counterparties
- Trade Contributor Program to get a true grasp of their accounts receivable and any dangers within
- Peer analysis to discover alternative, superior counterparties for which to redirect lines of credit
Celanese Corporation’s tagline is “The chemistry inside innovation.” That describes not just the products, but the people — including the global credit group led by Global Credit Manager Mark Walker. Mark and his team are driving innovation through processes, automation and use of diverse data sources as they provide critical support for the company’s entire business.
Celanese, founded in 1918, is a Fortune 500 company and a global technology leader in the production of specialty materials and chemical products that are used in most major industries and consumer applications. Based in Dallas, Texas, the company is one of the world’s largest producers of acetyl products, intermediate chemicals used in nearly every major industry. It is also a leading global producer of high performance engineered polymers used in a variety of high-value applications. It employs about 7,400 employees around the world, primarily in North America, Europe and Asia.
A fast growth environment
Celanese is growing fast, with revenue of over $6.8B, recently closing a record Q4 in 2014 and exceeding earnings per share in the first quarter of 2015. The credit team Mark leads plays an important role in driving that growth — and he’s justifiably proud of that. “Credit is considered a critical function at Celanese,” he says. “We are viewed as an essential business partner and support all businesses, including the procurement team.”
Mark heads a worldwide team of experienced credit professionals in locations as diverse as Germany, Brazil and China. Their primary mission is to manage risk to the overall company. They assess risk of customers and vendors globally, review contracts and set payment terms — with a particular eye on high-risk accounts. The team is highly experienced Mark himself has an MBA along with 25 years of experience in finance, analysis, systems development and organizational development, in addition to his credit expertise.
We love CreditRiskMonitor. It compactly gives us the data we want in a standard format, and helps us stay cutting edge. We have avoided a lot of bankruptcies.
Keys to credit success
Mark sees a few keys to the team’s success. A primary one is automation, including the use of credit scores. Since arriving at Celanese almost 12 years ago, he has been instrumental in leading the move to SAP’s automated accounts receivable module, which he loves. “It streamlines our work and makes us more productive,” he says. The team combines SAP with an in-house scoring model to prioritize risk. “We consider our model, our team, and our approach a real advantage,” Mark says. “We’re almost to the point where we can automatically evaluate customers to mitigate risk. We had record low losses during the last economic crisis.”
An absolutely essential piece of the team’s approach is using diverse data sources. Mark believes in multiple perspectives and using the right data for the right purpose. He uses a variety of broad-based and industry information sources — with CreditRiskMonitor as the team’s first stop.
When I’m researching a company, it’s the first place I go… it’s all standardized in presentation, and it’s global. I cannot use something U.S.-centric with our business. I also find the corporate linkage very helpful.
CreditRiskMonitor works for the team
“We love CreditRiskMonitor,” he says. “It compactly gives us the data we want in a standard format, and helps us stay cutting edge. We have avoided a lot of bankruptcies.” He has been using the service since the early 2000s and brought it to Celanese when he joined the company. “I have been a fan every since I first started using it!” he says.
In addition to having information from CreditRiskMonitor fed into SAP, the team uses most aspects of the service regularly. “We look at debt payables, all the scores and the company overall snapshot,” he says. “When I’m researching a company, it’s the first place I go. The big benefit is it’s all standardized in presentation, and it’s global. I cannot use something U.S.-centric with our business. I also find the corporate linkage very helpful.”
In addition, Celanese is a trade tape program participant, and provides their accounts receivables to CreditRiskMonitor. Mark regularly looks at the risk analysis provided back, and is a particular fan of the “hidden slow payers” risk reports. “I use those every month,” he says.
Wish list and advice
His advice for other customers? Make sure you’re getting the most you can out of the service—and definitely go to a user group meeting if you can! “The user groups are very helpful. There is no replacing face-to-face networking. They are great and you should have more of them.” He’s even sponsored one at his location and encourages other users to do the same. (If you’re interested in this possibility—please reach out to VP of Client Services, Christopher Chach, at cchach@creditriskmonitor.com.)
Mark’s wish list for CreditRiskMonitor is simple—stay on top of what’s next and continue to support the team’s strategic focus on automation. “Automation, combined with the right data, has made our department and our industry much more proactive. We can look forward and be predictive instead of depending on history. It would be nice to use cloud computing to be able to deliver more information without going to the CRMZ web site. That would definitely benefit us.”
We look forward to continuing to support Mark, his team and all of Celanese as they create the chemistry that enriches all of our everyday lives. Thank you for using CreditRiskMonitor!
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At a Glance
Anixter International, Inc., a $7.6 billion Fortune 500 wire, cable and communications industry leader based out of suburban Chicago
User:
Global Manager, Accounts Receivable Risk and ReportingAnixter International, Inc., Mike Ellis
Challenges:
- Getting paid within terms to ensure working capital
- Working with sales teams to bring in creditworthy customers
- Staying on top of companies at risk on a global scale
Solutions:
- Weekly, sometimes daily monitoring of financial changes involving at-risk companies
- Integrating CreditRiskMonitor data into internal reports for a clear, holistic picture of a customer’s risk potential
- Minimizing risk by using CreditRiskMonitor’s FRISK® score and High Risk Reports
Key Uses:
- Daily FRISK® score analysis by Ellis and his team
- Site content, including Bankruptcy Case Studies and High Risk Reports
Anixter Creates Team Cohesion, Anticipates Risk with CreditRiskMonitor Data
A $7.6 billion Fortune 500 company, Anixter International, Inc. was founded in 1957. Headquartered in Glenview, Ill., Anixter is one of the largest producers of wire and cable products, which are used in virtually every type of setting from large, corporate offices to small businesses and personal homes. Also a leader in communications and security, Anixter provides companies with the infrastructure solutions needed to keep a business running smoothly.
Mike Ellis, Global Manager of Accounts Receivable Risk and Reporting for Anixter, pulls daily reports from CreditRiskMonitor on all portfolio companies at a FRISK® score of “3” or worse. This process provides Ellis with valuable insight into the financial health of his portfolio companies long before bankruptcy becomes an issue.
Read Mike’s story to learn how his team successfully manages risk. Best practices include:
- Weekly, sometimes daily monitoring of financial changes involving at-risk companies
- Integrating CreditRiskMonitor data into internal reports for a clear, holistic picture of a customer’s risk potential
- Minimizing risk by using CreditRiskMonitor’s FRISK® score and High Risk Reports
A $7.6 billion Fortune 500 company, Anixter International, Inc. was founded in 1957. Headquartered in Glenview, Ill., Anixter is one of the largest producers of wire and cable products, which are used in virtually every type of setting from large, corporate offices to small businesses and personal homes. Also a leader in communications and security, Anixter provides companies with the infrastructure solutions needed to keep a business running smoothly.
From robust office security systems to a conference room’s wired Internet access, Anixter is in the business of keeping the world’s digital communications afloat. Global Manager Mike Ellis ensures streamlined communication internally while assessing risk and mitigating potential loss. Ellis uses data-driven reporting and consistent account monitoring to drive the decision making process of Anixter’s management team and sales staff.
The important role of working capital
Staying ahead of risk and getting paid on time are at the top of Ellis’ list. It is Ellis’ job to ensure the strength of Anixter’s extensive portfolio, which means pinpointing even the slightest of changes in the credit health of his customers. Mitigating risk is Ellis and his team’s primary goal.
“No public company goes bankrupt overnight,” he says. Thirteen years with the company and use of robust monitoring systems provide Ellis with the background and information needed to make crucial decisions about the company’s customer portfolio.
We rely on CreditRiskMonitor because they pull this data for us, which saves us time.
Using data to open the communication doorways
In today’s ever-changing, digital world, businesses must adapt to stay healthy, and that means opening communication lines between teams. Credit and sales can have a frictional relationship, but Ellis and his team work diligently to bring the two teams together.
“We’re using the sales relationship to accomplish AR goals, and we’re trying to be more engaged with the sales team before an order is placed,” said Ellis. He wants his credit department to be more than just the “center that says no,” and helping the sales team understand credit as a function - rather than a prohibitor—helps Anixter reach its sales goals.
It’s the tools provided by CreditRiskMonitor—the FRISK® score, High Risk Reports, and consistent monitoring— that help bridge the gap. The information provided by the service helps sales better understand how credit decisions are made.
Setting up for credit success
Ellis and his team pull daily reports from CreditRiskMonitor on all portfolio companies at a FRISK® score of “3” or worse. This data is then combined with the company’s internal AR report, infused with trend data, and reviewed from a holistic perspective. The data is closely monitored “day-by-day or week-by-week to see if the score of the company is decreasing or increasing,” said Ellis.
This process provides Ellis with valuable insight into the financial health of his portfolio companies long before bankruptcy becomes an issue: “By the time something goes wrong, we’re able to scale back on the operations to minimize our risk, and our sales people are actually thankful for it.”
We rely on CreditRiskMonitor because they pull this data for us, which saves us time. Every five minutes freed up can be four more [sales] phone calls.
CreditRiskMonitor's High Risk Reports spell out proof
An avid user of CreditRiskMonitor’s High Risk Reports and Bankruptcy Case Studies, Ellis extracts the data and integrates the scenarios into Anixter’s day-to-day operations. “I want to know how these companies go bankrupt,” Ellis states, and finds the reports provide him valuable insight into patterns and trends that could spell bankruptcy for the companies he works with directly.
In Ellis’ eyes, cash is still king, and knowing how a company is leveraged, whether in debt or in cash, is powerful information in a credit department’s arsenal.
“We rely on CreditRiskMonitor because they pull this data for us, which saves us time,” said Ellis. “Every five minutes freed up can be four more [sales] phone calls.”
Wish list and advice
Ellis’ wish list includes private company financial data. “I know this is like pulling a rabbit out of a hat, but if we had a searchable database, where 30 percent of our private companies had financial data on record, that would be phenomenal.”
As for advice when dealing with sales teams, Ellis implores credit managers and teams to use the numbers: “Lead them through the math, and let them think and calculate.” This process—providing the Anixter sales teams with the financial information and the numbers — allowed them to see that credit managers make decisions that are calculated and backed up by data.
CreditRiskMonitor continues to roll out new services to aid Mike and his team, as well as all our customers. We know private company data is high on everyone’s wish list and we’re excited to be beta testing a new solution for private company financials. In the meantime, we look forward to building our relationship with Mike and Anixter as a whole, as they work to bridge the gap between credit and sales and stay on top of risk management.