MEASURING, MODELING AND MONITORING YOUR LOCKBOX

From A Practical Guide by Phoenix Hecht (updated): It is a good practice for corporations to review their remittance systems on a regular basis as the number of electronic payments increases. Many times a remittance system review includes a lockbox analysis for check remittances.

Checks are still the dominate form of business-to-business payments despite a decade long efforts to migrate to electronic payments. A lockbox analysis identifies the optimum number of lockbox sites, the best locations for these sites, and the most efficient assignment of customers to the selected sites. A common type of analysis evaluates the current performance of an existing lockbox system and fine-tunes the system by reassigning customers among existing lockbox sites … (click to read more)