Case Studies Improving Overall A/R Efficiency with Digital Transformation of Credit, Collections, and Cash Posting

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	Improving Overall A/R Efficiency with Digital Transformation of Credit, Collections, and Cash Posting

Improving Overall A/R Efficiency with Digital Transformation of Credit, Collections, and Cash Posting

Technology Category	Analytics & Modeling - Predictive Analytics Application Infrastructure & Middleware - Data Exchange & Integration Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Functions	Business Operation Quality Assurance
Use Cases	Process Control & Optimization
Services	Software Design & Engineering Services System Integration
Challenge	Summit Electric faced several challenges in their Accounts Receivable (A/R) processes. The credit team struggled with manual and inconsistent data gathering, incomplete data, lack of real-time risk alerts, and longer turnaround times due to the absence of a workflow. The collections team had no customer prioritization strategy and faced issues with process standardization, leading to inconsistencies and inefficiencies. The cash application process was entirely manual, with poor lockbox services and manual deduction coding, resulting in slow processing and delays. Read More
About Customer	Summit Electric Supply Co. Inc. is a privately held, independent wholesale distributor of industrial electrical equipment and supplies, founded in 1977. Headquartered in Albuquerque, New Mexico, the company has over 550 employees and ranks #17 among electrical distributors in the United States. Summit Electric is known for its forward-thinking approach towards technology and its commitment to serving customers by adding superior value through industry expertise and innovative systems. With a revenue of $505 million, the company has a significant presence in the wholesale distribution industry. Read More
Solution	HighRadius provided Summit Electric with a comprehensive solution to address their A/R challenges. The Credit Cloud automated the approval workflow for low-risk customers, aggregated credit data from multiple agencies, and offered an online credit application for ease of use. The Collections Cloud prioritized worklists for maximum collector effectiveness and automated correspondence for low-risk customers. The Cash Application Cloud eliminated lockbox fees, automated transactional tasks, and enabled auto-identification and submission of remittance in no remittance scenarios. Additionally, it provided automatic conversion of customer reason-codes to internal codes and auto-invoice matching, significantly improving efficiency and reducing manual effort. 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 Functions

Business Operation

Quality Assurance

Use Cases

Process Control & Optimization

Services

Software Design & Engineering Services

System Integration

Challenge

Summit Electric faced several challenges in their Accounts Receivable (A/R) processes. The credit team struggled with manual and inconsistent data gathering, incomplete data, lack of real-time risk alerts, and longer turnaround times due to the absence of a workflow. The collections team had no customer prioritization strategy and faced issues with process standardization, leading to inconsistencies and inefficiencies. The cash application process was entirely manual, with poor lockbox services and manual deduction coding, resulting in slow processing and delays.

About Customer

Summit Electric Supply Co. Inc. is a privately held, independent wholesale distributor of industrial electrical equipment and supplies, founded in 1977. Headquartered in Albuquerque, New Mexico, the company has over 550 employees and ranks #17 among electrical distributors in the United States. Summit Electric is known for its forward-thinking approach towards technology and its commitment to serving customers by adding superior value through industry expertise and innovative systems. With a revenue of $505 million, the company has a significant presence in the wholesale distribution industry.

Solution

HighRadius provided Summit Electric with a comprehensive solution to address their A/R challenges. The Credit Cloud automated the approval workflow for low-risk customers, aggregated credit data from multiple agencies, and offered an online credit application for ease of use. The Collections Cloud prioritized worklists for maximum collector effectiveness and automated correspondence for low-risk customers. The Cash Application Cloud eliminated lockbox fees, automated transactional tasks, and enabled auto-identification and submission of remittance in no remittance scenarios. Additionally, it provided automatic conversion of customer reason-codes to internal codes and auto-invoice matching, significantly improving efficiency and reducing manual effort.

Impact #1	Summit Electric achieved a 98% header level hit-rate, ensuring high accuracy in their A/R processes.
Impact #2	The company saw an 80% Collector Effectiveness Index (CEI), indicating improved efficiency in collections.
Impact #3	The implementation of HighRadius solutions led to a 2.9-day reduction in Days Sales Outstanding (DSO) over one year.

Impact #1

Summit Electric achieved a 98% header level hit-rate, ensuring high accuracy in their A/R processes.

Impact #2

The company saw an 80% Collector Effectiveness Index (CEI), indicating improved efficiency in collections.

Impact #3

The implementation of HighRadius solutions led to a 2.9-day reduction in Days Sales Outstanding (DSO) over one year.

Benefit #1	98% Header Level Hit-Rate
Benefit #2	80% Collector Effectiveness Index (CEI)
Benefit #3	2.9 Day Reduction in DSO over 1 year

Benefit #1

98% Header Level Hit-Rate

Benefit #2

80% Collector Effectiveness Index (CEI)

Benefit #3

2.9 Day Reduction in DSO over 1 year

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Overview

Improving Overall A/R Efficiency with Digital Transformation of Credit, Collections, and Cash Posting

Operational Impact

Quantitative Benefit