$5 Million Invalid Deductions Recovered Annually

Impact Achieved

85%

Reduction in Deduction Backlog Dollars

48-Day

Reduction in DDO

55%

Improvement in Analyst Productivity

$150 to $25

Small Balance Write-Off Threshold Reduction

 “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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Finning

$32M

Reduction in Open Disputes (from $94M down to $62M)

50%

Faster Dispute Resolution (Time Cut from 56+ to 29 Days)

43%

Improvement in Collector Productivity (5.8x More Calls & 2x More Emails)

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L’Oréal

$57M

in Credit Risk Eliminated

$3.4M

in Working Capital Unlocked

96%

Straight-Through Cash Application across 941K Invoices

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Danone Deductions

$25.5M

Recovered in Invalid
Deductions Annually

75%

Boost in
Analyst Productivity

25-Day

Reduction in DDO

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