$5 Million Invalid Deductions Recovered Annually

Impact Achieved

$5M

Recovered in Invalid Deductions Annually (a 300%+ increase)

85%

Reduction in Deduction Backlog Dollars & 750+ Incremental Deductions Resolved Weekly

48-Day

Reduction in DDO (from 60 to 12 days)

55%

Improvement in
Analyst Productivity

Small Balance

Write-off Threshold Reduced from $150
to $25

 “We were in a bad place where our only option seemed to be hiring a hundred people. Instead, HighRadius powered an incredible comeback, helping us reduce open deductions by 72% and recover $5 million in invalid claims, turning around a seemingly impossible situation.”

case-study-speaker

David Meininger

Sr. Director of Customer Operations

HP Hood

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About HP Hood

HP Hood, an American dairy company established in 1846, is headquartered in Lynnfield, Massachusetts. It provides a diverse selection of dairy items such as milk, ice cream, and cottage cheese. The company is recognized for its dedication to high-quality products and
community involvement.

Revenue

$3.4 Bn+

Employee Count

3500+

Region

Massachusetts, USA

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Top Challenges

  • Massive Deductions Backlog: Following an SAP migration, the number of open deductions exploded from 2,500 to an unworkable 26,000, representing $19M in unresolved claims.
  • Extended Settlement Cycles: The massive backlog and manual processes caused the average settlement cycle for deductions to stretch to 60 days, which delayed cash application and impaired accrual visibility.
  • Skyrocketing Write-Offs: In an attempt to manage the backlog, the company raised its tolerance threshold to $150, which caused monthly write-offs to spike from $20K to $300K and masked collectible invalid claims.
  • Lack of Governance: Non-trade deductions lacked any formal or standardized approval workflow, with approvals being inconsistent and ad hoc, leading to audit risks.
  • Fragmented Data and Manual Burden: A 15-member A/R team was overwhelmed by 120,000 annual deductions, forcing them to manually hunt for backup documents scattered across multiple portals, carrier systems, and emails.

 

Business Benefits

  • 48-Day Reduction in Days Deduction Outstanding
  • 55% Improvement in Productivity
  • Governance & Audit Control Restored With a $25 Write-Off Tolerance Limit
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