Case Studies A CPG Credit and A/R Success Story

Edit This Case Study Record

	A CPG Credit and A/R Success Story

A CPG Credit and A/R Success Story

Technology Category	Analytics & Modeling - Predictive Analytics Application Infrastructure & Middleware - Data Exchange & Integration Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Consumer Goods Food & Beverage
Applicable Functions	Business Operation Quality Assurance
Use Cases	Predictive Maintenance
Services	Software Design & Engineering Services System Integration
Challenge	Danone faced significant challenges in its Accounts Receivable (A/R) processes due to a decentralized system and a diverse customer base. The company had to manage multiple payments and remittance formats manually, leading to increased process complexity and a high number of short pays. The A/R team spent a considerable amount of time processing electronic and check payments, which delayed dispute identification and resolution. Additionally, the manual deductions management process caused delays in dispute management, increasing the Days Deductions Outstanding (DDO) to over 45 days. The lack of automation in the collections process further affected cash flow and working capital, and the inability to identify the right customers for collections hindered customer-client relationships. Read More
About Customer	Danone is a leading global food and beverage corporation headquartered in Paris. The company is dedicated to bringing health through food to as many people as possible and operates in four main business areas: Essential Dairy and Plant-Based Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone serves a diverse customer base, including over 1000 food distributors ranging from small 'mom & pop' stores to large retailers like Wal-Mart. With a global presence and geographically distributed operations, Danone's Accounts Receivable (A/R) processes were managed through shared services across multiple business units worldwide. Read More
Solution	Danone partnered with HighRadius to automate its A/R processes and improve the collections process. HighRadius implemented out-of-the-box engines for parsing remittance from multiple formats, achieving over 90% cash application automation within 90 days. Features like Email Remittance Capture, Checks AI-OCR Capture, and Web Portal Remittance Capture enabled the automatic processing of various remittance formats, significantly increasing the cash posting rate. The HighRadius Cash App Cloud solution automated the identification, matching, and coding of deductions, speeding up deduction resolution and recovery. The Deductions Cloud aggregated data from various sources, such as retailer websites and financial systems, and matched them directly to the customer, automating the entire deductions process. This increased visibility into the deductions process and allowed for timely follow-up with sales, distribution, or customers for resolution. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Application Infrastructure & Middleware - Data Exchange & Integration

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Consumer Goods

Food & Beverage

Applicable Functions

Business Operation

Quality Assurance

Use Cases

Predictive Maintenance

Services

Software Design & Engineering Services

System Integration

Challenge

Danone faced significant challenges in its Accounts Receivable (A/R) processes due to a decentralized system and a diverse customer base. The company had to manage multiple payments and remittance formats manually, leading to increased process complexity and a high number of short pays. The A/R team spent a considerable amount of time processing electronic and check payments, which delayed dispute identification and resolution. Additionally, the manual deductions management process caused delays in dispute management, increasing the Days Deductions Outstanding (DDO) to over 45 days. The lack of automation in the collections process further affected cash flow and working capital, and the inability to identify the right customers for collections hindered customer-client relationships.

About Customer

Danone is a leading global food and beverage corporation headquartered in Paris. The company is dedicated to bringing health through food to as many people as possible and operates in four main business areas: Essential Dairy and Plant-Based Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone serves a diverse customer base, including over 1000 food distributors ranging from small 'mom & pop' stores to large retailers like Wal-Mart. With a global presence and geographically distributed operations, Danone's Accounts Receivable (A/R) processes were managed through shared services across multiple business units worldwide.

Solution

Danone partnered with HighRadius to automate its A/R processes and improve the collections process. HighRadius implemented out-of-the-box engines for parsing remittance from multiple formats, achieving over 90% cash application automation within 90 days. Features like Email Remittance Capture, Checks AI-OCR Capture, and Web Portal Remittance Capture enabled the automatic processing of various remittance formats, significantly increasing the cash posting rate. The HighRadius Cash App Cloud solution automated the identification, matching, and coding of deductions, speeding up deduction resolution and recovery. The Deductions Cloud aggregated data from various sources, such as retailer websites and financial systems, and matched them directly to the customer, automating the entire deductions process. This increased visibility into the deductions process and allowed for timely follow-up with sales, distribution, or customers for resolution.

Impact #1	Danone achieved 100% no-touch cash processing, eliminating the need for manual intervention in cash application.
Impact #2	The automation solution led to a 25% reduction in Days Deductions Outstanding (DDO), improving the efficiency of the deductions process.
Impact #3	The cash posting rate increased by 95% within 90 days of implementing the automation solution.

Impact #1

Danone achieved 100% no-touch cash processing, eliminating the need for manual intervention in cash application.

Impact #2

The automation solution led to a 25% reduction in Days Deductions Outstanding (DDO), improving the efficiency of the deductions process.

Impact #3

The cash posting rate increased by 95% within 90 days of implementing the automation solution.

Benefit #1	25% reduction in Days Deductions Outstanding (DDO).
Benefit #2	95% increase in cash posting rate.
Benefit #3	75% increase in productivity.

Benefit #1

25% reduction in Days Deductions Outstanding (DDO).

Benefit #2

95% increase in cash posting rate.

Benefit #3

75% increase in productivity.

Download PDF Version

Overview

A CPG Credit and A/R Success Story

Operational Impact

Quantitative Benefit