DB Schenker is a logistics company with about 1,640 crores EUR annual revenue and 72000 employees worldwide. It has expanded to over 2000 locations globally with over 750 warehouses. DB Schenker has become global leaders in its 140 years of inception but even the largest machine can hit a bit of a snag sometimes. For DB Schenker, this came in the form of their Cash Application system.
Let’s look at how Cash Application at DB Schenker was being dragged back.
DB Schenker had a primarily manual cash posting method. Six of their employees had to manually post cash to SAP which was not only time-consuming but also error-prone. They also had to maintain the ERP database (which was huge considering the size of the company) and cope up with journal entry daily. They had no lockbox, due to which checks were mailed to branches and manually deposited to the bank each day.
All the above-mentioned problems raised a few challenges that were turning into a hindrance for DB Schenker and were holding back the dreams of global expansion.
The labor-intensive Cash Application processes which were in use at DB Schenker were snowballing into obstacles and major challenges. These challenges were:-
To tackle and nullify these challenges, DB Schenker needed to change its traditional system of operations. Changing the system required a makeover of all the processes involved in it from ground zero. To be able to achieve this, they needed to choose the right vendor.
To move forward with automation, DB Schenker needed a vendor who not only understood the requirements but also provided a concise solution. They were looking for a vendor who could-
DB Schenker after careful evaluation chose HighRadius as their vendor who would lead them into the automation era.
HighRadius with its automated Cash Application solutions revamped the previous obsolete system. The Cash Application team came up with a new, clearer and much more concise Cash Application processes which enabled DB Schenker to expand much more flexibly.
This enabled DB Schenker to:-
After automation, it provided 3 features that were crucial to complete the transition.
The collaboration with HighRadius led to the Cash Application systems of DB Schenker moving forward by leaps and bounds. Cash Application was not a labor-intensive and error-prone process anymore.
Automation made cash posting easier and less labor-intensive. Along with that, automation was also able to:-
It is widely believed that automation is difficult to implement. A poor Cash Application system can cripple the funds of a company slowly. Besides leaving a negative impact on the customer experience, it is also very resource depleting. Therefore the call for a newer and scalable solution is at its peak.
RDC 2.0: How North American SMBs Could Save More than $1.3 Billion in Lockbox Fees
Cash Application Cloud Best Practices Webinar