Yara – Development of a credit analysis and billing process

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Development of a credit analysis and billing process .

Yara, a Norwegian fertilizer manufacturer, founded in 1905, has a worldwide presence, with around 15,000 employees and sales to over 160 countries. In Brazil, it is headquartered in Porto Alegre and has offices in São Paulo and Paulínia, and has 5 production plants and 24 own fertilizer mixing units, with a presence in the main agricultural production centers. It also has 2 own production units for environmental solutions, 5 mining units and 2 port units.


AS-IS Matrix Customer journeyUser flow
Prototype Digital and Lean Pillars

How we guarantee such an assertive credit analysis in a scenario full of variables.

Check out the important project we developed for Yara, a world leader in the manufacture and marketing of fertilizers.

Sales of agricultural inputs to producers are surrounded by risks because they are generally carried out via credit with long-term payments, which can reach 18 months or more, and has an important particularity, which offers uncertainties to the company’s finances, the harvest.

Payments are linked to many variables such as the exchange rate, currency, inflation, but, above all, the farmer’s cultivation, which means that the success of crop production has a direct impact, which makes the entire financial process complex and challenging.

But then, how to analyze and calculate so many parameters and variables to validate credit and collection and ensure an assertive analysis in a more dynamic, agile and safe way for your customers and for the company?

Performa_IT found the solution!

Keep reading and learn more about our case with one of the largest fertilizer producers in the world.

The challenge

To find out if the producer was able to receive credit for making the purchase, all assessments were carried out manually by Yara’s financial team, through the assessment of a series of parameters and this compromised part of the company’s workforce, which could be allocated to less operational and more strategic tasks for the company.

The big problem is that the tools, systems and ERPs available on the market do not provide for a credit analysis as detailed as that of the agribusiness sector.

In addition, none of the tools offered continuous monitoring of credit use – a fundamental step in guaranteeing payment to be made as approved and defined.

The solution

Focusing on solving all these customer problems, Performa_IT developed a complete portal for fully automated credit and billing, capable of gathering the large amount of information and variables necessary about the producer, such as the crop, the planting area, including crosses with satellite images, necessary for the complete and detailed analysis of the customer’s credit.

With this information, it was possible to predict — based on that producer’s market — its sales potential and, consequently, more assertively assess compliance with the payment of its orders.

The solution developed by Performa_IT also includes the possibility of tracking and cross-referencing data for the release of shipments in progress.

In numbers, the portal performs an average of 20,000 analyses per day, reaching peaks of 100,000, all updated in less than a minute, taking into account about 80 different and important parameters for a complete analysis.

In short, the solution controls risk in 3 phases:

  • 1st phase: analysis and granting of the credit limit
  • 2nd phase: credit usage control
  • 3rd phase: management of payments and guarantees for billing

A complete

To ensure that this analysis was implemented from end to end, we delivered the guarantee management stage, to mitigate the concession company’s risks with the guarantees offered by customers.

That is, in addition to all the other functionalities already mentioned, the solution verifies data such as the producer’s income tax, queries to the Serasa score, negotiations and intermediation with existing notaries, among others, ensuring even greater assertiveness in the credit analysis.

High data
volume = very
high security

Before final approval by Yara, at the headquarters’ request, the portal underwent security tests by Ernst & Young (EY) and obtained an A-grade in this regard.

The entire project was phased from complete immersion in the customer’s process, going through the co-creation stage with the entire Yara’s team and prototype stages worked on all the Lean and Digital pillars, ending with logic and speed assessments, ensuring an application of high performance.

The results

For Yara, the gain in assertiveness was extremely relevant, including the high performance of the solution.

Credit analyses that were previously carried out in a period that in some cases took a month, are now carried out in minutes, which brought an enormous financial gain, as the system even allows blocking of shipments, in case of customers being in debt with their payments.

The entire system is 100% integrated with the company’s SAP and Sales Force, integrated with Serasa and some important information bases, such as notary’s offices.

Used by a Yara’s team of 1,800 users, ranging from the financial team to the commercial team, to help with commercial proposals and field visits by technicians, with precise information about the farms and plantations of each customer.

The solution provides not only financial integration, but also ease in commercial negotiation, as the sales team has all the property data at hand when negotiating the order.

With a high safety index, validated by Ernst & Young (EY) which guaranteed an A-grade in this regard, today it is a robust work tool for Yara, which has brought absurdly relevant gains.

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