SMART THINKERS ACER CASE STUDY - Euler Hermes World Agency
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SMART THINKERS
ACER CASE STUDY
Euler Hermes World Agency
In cooperation with
PARTNERSHIP
Partnership is an often over-used word in business, and
yet it perfectly captures the relationship between Acer,
a leading global ICT company, and Euler Hermes, the
world’s largest trade credit insurer.
Acer began working with Euler “Its teams honestly and
Hermes more than ten years ago. genuinely take the time to get to
Because of its size and international know our business, talk to our
dimension, it was introduced to the senior executives and visit our
Euler Hermes World Agency team, buyers not only to understand
specifically tasked with devising
the risk, but also so that they
bespoke, innovative credit insurance
programmes for multinationals with
can understand our specific
a turnover in excess of €500 million. position and business model.”
Chris Greisberger, Head of Global Acer has built a reputation over the
Risk Management for Acer, says that years for the quality and reliability
from the start, the World Agency of its PC and service-centric portfolio
team has invested significant time in offering that includes notebook and
understanding our business: desktop PCs, servers and storage
“An insurer could just analyse our devices, LCD monitors and projectors,
customers’ financials and decide and tablets. Its products are sold
that’s sufficient to set a credit limit,” through all relevant distribution
he explains, “but Euler Hermes World channels in every country around
Agency does much more than that.” the world, either directly or through
intermediaries. To put the scale of
its risk management task into
perspective, Acer currently enjoys
significant support through its insurer,
which is reflected by Euler Hermes
“
providing over EUR 3bn of credit lines
for Acer’s customers.
As Euler Hermes understands how our
needs are constantly developing, they
are very flexible in adapting parts of
the agreement to accommodate
these changes”
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Within the IT industry, businesses And he is succeeding: some 98% of all operating with a shared mission.
typically follow one of two risk invoices generated are collected on There is constant dialogue.”
management models: they either use time and only 2% are ever disputed. Part of this ‘constant dialogue’
credit insurance, or they adopt an in- Of these, nearly all have been includes ensuring flexibility in his
house insurance strategy via a resolved within a very short global credit insurance agreement.
captive. Chris says that Acer is timeframe of about three weeks. His “Our policy is probably one of
different: “We use a hybrid model,” DSO figure (net after transportation) the most complex in the industry.”
he continues, “where we effectively is the envy of the industry, and a Chris says, “This is due to
share the risk with Euler Hermes.” reflection of the high regard in which our hybrid model regarding
the credit team is held within the risk participation.”
“This ‘risk participation’ approach Acer organisation.
gives us even greater flexibility and “As Euler Hermes understands how
control over the risks that we take Acer also has another powerful risk our needs are constantly developing,
on, and especially enables us to look management ‘tool’ – the Acer Risk they are very flexible in adapting
at higher risk levels where we believe Category. ARC is Acer’s own risk parts of the agreement to
the business opportunity is justi fied.” scoring process that brings together accommodate these changes, and
a blend of intelligence from a variety find the appropriate language that
Such an approach is indeed different, of different sources. ARC serves the legal teams, Acer’s Credit Dept.,
although almost everything about to forecast, i.e. predict credit risks the insurers and the re-insurers are
Acer challenges conventional (potential customer defaults). happy with.”
thinking. Chris understands that the
company’s accounts receivables are The company uses this information Acer’s open relationship with
its greatest asset, and need to be and the ARC ‘score’ to set the internal its insurer is in many ways an
protected. He also recognises how limits that the business is willing to example of best practice in
the sensible and prudent provide, and to compare and contrast both the IT and the credit
management of credit risk ultimately directly with Euler Hermes’ own insurance industries.
supports sales and profitable Grading model. “Euler Hermes
growth. He takes, therefore, both a respects ARC and is always prepared
Claims have been very low – yet
proactive and reactive approach to to listen to what we have to say as
another example of how the
his role: proactively, he is constantly well,” Chris continues.
proactive part of Chris’ role is clearly
analysing risk when taking on new
delivering: “Credit insurance is an
business and projecting those risks “If, for whatever reason, a limit is
essential part of our risk
against a potential future default; initially declined or not at a sufficient
management strategy,” Chris
reactively, he is responsible for the level, we can analyze it using our own
concludes, “but Euler Hermes does
company’s collections operation, risk analysis and discuss it before a
not try and dictate our future.
following up on invoices that are final decision is taken. Again, it is
They work with us to enjoy
raised and acting swiftly to resolve about having an honest and open
mutual success.”
any disputes that may occur. relationship, where the Euler Hermes
World Agency team is seen very
much as part of our own team,
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Euler Hermes France - World Agency French branch of Euler Hermes SA 1 place des Saisons 92048 Paris-La-Defense France CEDEX eulerhermes.com ABOUT ACER Founded in 1976, today Acer is one of the world’s top ICT companies and has a presence in over 160 countries. As Acer looks into the future, it is focused on enabling a world where hardware, software and services will infuse with one another to open up new possibilities for consumers and businesses alike. From service-oriented technologies to the Internet of Things to gaming and virtual reality, Acer’s 7,000+ employees are dedicated to the research, design, marketing, sale, and support of products and solutions that break barriers between people and technology. Please visit www.acer.com for more information. © Copyright 2020 Acer Inc. All rights reserved. Acer and the Acer logo are registered trademarks of Acer Inc. Other trademarks, registered trademarks, and/or service marks, indicated or otherwise, are the property of their respective owners.
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