Post on 28-Dec-2015
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Customer-Related Issues
– Multitude of payment forms (Check, ACH, Wire Transfer)
– Remittance Detail provided in variety of formats (Paper, EDI, Web, Email)
– Remittance line items may refer to alternate reference #’s (PO, BOL, etc)
– ERP Lockbox System requires direct reference to invoice # to auto-apply
Bank-Related Issues
–Bank Keying fees are expensive and produce low on-invoice hit-rate
–Labor intensive manual application for all non-standard and residual lines
Cross Functional Challenges
• Poor operational data available relative to root cause margin losses– Consolidation of claims and claim types by check masks residual volumes
and prevents identification of potential core operational issues early in the process. (pricing, shortages, case pack, etc)
– Creates non value – added tasks to break out claims and types to prepare for credit issuance/rejection and settlement.
• Difficulty reconciling customer disputes requiring labor intensive research– Home Depot – Costco – West Marine write off losses in excess of 100K
due to inability to reconcile credits issued to claims taken.
Let’s Hire an Army of IT Engineers
Software Upgrade Support
Backup/RestoreService Pack
Development Network issues
Hosting Players
Reliability, High Availability, Capacity Elasticity
Cloud Players
Built-in Redundancy
Virtually unlimited storage, computing power
You have to manage reliability, fail over yourself
Bring your own or rentservers to increase capacity
HighRadius Solution
• End to End Automation– Rules Engine handles customer specific rules for invoice
matching, residual identification & coding, cash discount analysis.
– Data Aggregation Engine Amasses remittance detail from a variety of sources (Customer portals, Bank Websites, FTPs, Emails,) and formats (EDI, paper, web email etc.)
– Syndication Engine produces a single file specific to SAP allowing the ability to fully leverage standard ERP cash posting.
Benefits We Experienced…
• Higher on-invoice auto apply rate 94% and improving• Same day cash application• Auto-create residuals and capture deduction detail• Reduced Post Audit losses• Reliable Operations reporting through improved residual
visibility– No more consolidation of claims
• Minimize keying errors• Software as a service:
– Adding new customers/rules does not require internal IT effort
• No Additional Hardware• Free up resources for more value-added tasks (research &
analysis, collections, data entry of credits to relieve AR)