Development of a delinquent customer management model using DMAIC steps and KPIs at a Service Station

Giuliano Altamirano-Miranda, Treicy Armas-Rubio, Cynthia Elías-Giordano, Carlos Torres-Sifuentes, Carlos Cespedes

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The objective of this work is to propose a customer management model to address the high delinquency existing in a company dedicated to the retail sale of fuel. The study followed an approach based on DMAIC (Define, Measure, Analyze, Improve and Control) steps to address customer delinquency. The company's current credit and collection policies were identified, as well as the current indicators of the process. Then, the information obtained was analyzed to propose the implementation of new management KPIs, a restructuring of policies and a training plan for staff. In the control stage, the new indicators implemented were applied in order to maintain continuous monitoring of improvements, as well as a training schedule. This model makes it possible to correctly manage credit and collection policies and processes involved in the existence of a high number of delinquent clients, in such a way that said processes can be redefined, as well as achieving a reduction in the number of clients who do not pay off their debt. Within the established time and become part of the company's delinquent portfolio. The motivation for this work is to establish a management model for delinquent customers, which serves as a guide for the various companies belonging to the retail fuel sector.

Original languageEnglish
Title of host publicationProceedings of the 3rd LACCEI International Multiconference on Entrepreneurship, Innovation and Regional Development
Subtitle of host publication"Igniting the Spark of Innovation: Emerging Trends, Disruptive Technologies, and Innovative Models for Business Success", LEIRD 2023
PublisherLatin American and Caribbean Consortium of Engineering Institutions
ISBN (Electronic)9786289520774
DOIs
StatePublished - 2023
Event3rd LACCEI International Multiconference on Entrepreneurship, Innovation and Regional Development, LEIRD 2023 - Virtual, Online
Duration: 4 Dec 20236 Dec 2023

Publication series

NameProceedings of the LACCEI international Multi-conference for Engineering, Education and Technology
ISSN (Electronic)2414-6390

Conference

Conference3rd LACCEI International Multiconference on Entrepreneurship, Innovation and Regional Development, LEIRD 2023
CityVirtual, Online
Period4/12/236/12/23

Keywords

  • DMAIC
  • Six Sigma
  • cost reduction
  • customer delinquency
  • operating profit

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