$57 Million Reduction In Credit Risk

Impact Achieved

$57M

in Credit Risk Eliminated

$3.4M

in Working Capital Unlocked

96%

Straight-Through Cash Application across 941K Invoices

82%

of Deductions Auto-Coded into ERP Reason Codes

“Before automation, our deductions process was a disaster. I had a team of eight working constantly overtime, yet we were losing so much in discounts that it felt like we weren’t even making money. Automation is what transformed that unsustainable cycle of financial leakage and team burnout into a clean, controlled operation.”

case-study-speaker

Danielle Leonard

Director, O2C Supply Chain Ops

L’Oréal

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About L’oreal

L'Oréal, a global leader in the beauty industry for over a century, is dedicated to offering a diverse portfolio of brands. The company focuses on creating high-quality, safe, and effective cosmetics, skincare, haircare, and perfumes, driven by a commitment to innovation and sustainability.

Revenue

$44 Bn+

Employee Count

90,000+

Region

Clichy, France

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Top Challenges

  • High Overdue A/R and Credit Risk: 24.4% of the company’s receivables were overdue, which exposed the company to $57M in credit risk and caused credit holds that stalled shipments to key retailers.
  • Fragmented and Siloed Operations: A/R processes were misaligned across more than 40 brands and multiple geographies, with data scattered across five separate lockboxes and numerous remittance formats like checks, faxes, and portals.
  • Manual Deduction Overload: Eight analysts worked overtime to manage a backlog that caused a two-week clearing delay, manually reviewing 43 pages of deductions daily, with over 40% being difficult non-trade claims.
  • Inefficient Cash Application: Processing over 200 payments daily was slowed significantly as 80% of remittances required manual cleanup, which caused a 2-day clearing delay that locked up $3.4M in cash flow.
  • Error-Prone Manual Coding: 82% of short-pays required analysts to manually translate vague retailer reason codes into internal ERP codes, a time-consuming and inconsistent process that led to errors and increased write-offs.

Business Benefits

  • $57M in Credit Risk Eliminated by Automating Deductions and Unlocking $3.4M in Cash Flow
  • 82% of Deductions Auto-Coded into ERP Reason Codes
  • 96% Straight-Through Cash Application Across 941K Invoices Annually
  • A/R Overdue Reduced from 24.4% to 11.7%
  • 77,000+ Exceptions Resolved/Month
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