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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:
Senior Director, Global Account Management, Anixter International, Inc., Natalia Reed
Challenges:
- Mapping out the structure and organization of multinational customers
- Reflecting customer interactions and dynamics in all account management efforts
- Comprehensively addressing customers’ global spend, demand and business requirements
Solutions:
- Analyzing client/prospect business descriptions, business units and subsidiary hierarchy
- Leveraging the news portfolio to track announcements about client mergers, acquisitions and new projects
- Minimizing the risk of the unknown by empowering account managers with up-to-date information
Key Uses:
- Customer portfolio building
- FRISK® Score
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.
Senior Director of Global Account Management Natalia Reed provides the entire account management team with the information they need to strategically support Anixter’s multinational clients and prospects. Reed uses the trusted corporate information in CreditRiskMonitor to map out the organizational hierarchies of clients and prospects and respond proactively to critical news and announcements from more than 700 multinational companies.
Peeling back the layers of corporate complexity
“My immediate ‘customers’ are Anixter’s account managers,” said Reed. She supports a team of professionals who interact with the company’s customers and prospects on a daily basis. With a presence in more than 50 countries, Anixter’s market includes six continents and a very diverse clientele. By mapping out the complex mix of subsidiaries, business units, consortiums and joint ventures related to each customer, and by working to understand how they interact in the marketplace, Anixter can meet their business needs in a customized way. Account managers can then address each client’s spend using a consultative relationship-based approach.
We aim for holistic customer relationships where we allow them to be more efficient and effective.
Competing on a global scale
Anixter is not the only distributor with a large, global footprint. They compete with other international players as well as smaller, localized specialists. Fully understanding the demand associated with each account allows the Anixter team to highlight their unique value. “We come in with the entire picture and say, ‘This is how we can save you money. This is how we can make your business run smoothly,’” said Reed. She provides critical information on earnings announcements, facility openings and closures and new project announcements to Anixter’s account managers, allowing them to remain informed without taking their attention away from customers to conduct research. Maintaining a portfolio of critical customers within CreditRiskMonitor’s web-based system elevates these account managers to the level of trusted consultants.
Demand mapping and customer success
Since they have locations the world over, Anixter often has a presence close to the key locations of multinational customers. When an account manager knows which materials are stocked in each location because they understand how that operation is structured, they can offer a plan to realize significant savings – one that combines Anixter’s economies of scale and localized presence. If a customer imports materials, they have to pay for duties, taxes, freight and VAT. Working with Anixter locally offers them savings in terms of both time and money.
The CreditRiskMonitor news portfolio keeps my team in the know.
"Must-have" customer information
Having the right information about prospects shortens the ramp-up time on each new account by providing Anixter with easy access to the company’s corporate umbrella and recent news. This makes it possible to have a solid introductory conversation and to write a first strategic account plan. Over time, the account management team builds up the portfolio associated with each customer, but it all starts with the foundation of information Reed pulls from CreditRiskMonitor: “I consider this information a must-have in forming successful customer understanding,” said Reed.
Traditionally, Anixter worked with one company and one country per customer account. Today, the complexity is much higher, requiring account managers to work with sometimes three or four countries or business units per implementation effort. With broad access to relevant client information, Anixter has ensured a seamless approach to customer support. “We call it ‘One Anixter’ – the unified way we approach our multi-faceted global accounts,” said Reed.
Wish list and advice
Reed’s wish list is topped by getting additional information on private companies and her keen understanding that no news source can be too up-to-date. “Things are constantly changing,” Reed points out. “We are constantly validating information, trying to get as close to 100% accuracy as possible.”
In terms of advice for aspiring account managers and directors, Reed advocates for learning as much as possible about your industry from a range of perspectives and immersing yourself in information. “Love what you’re selling,” said Reed. “If you don’t love it, and if you don’t believe in it, you’re not going to be successful at selling it.”
Although Reed’s application of the information in CreditRiskMonitor is different from that of credit risk managers, the end goal is the same: empowering her team and company to achieve the highest level of performance by delivering strategic value to their customers. We are always impressed to see our validated information and customizable views leveraged in new ways. We look forward to seeing how Reed and her team continue to apply the CreditRiskMonitor solution to grow Anixter’s global customer base and corporate footprint.